8th August 2014 - Daily Current Affairs updates

8th August 2014 - Daily Current Affairs updates


National Affairs

1. Delhi government has launched a week long city-wide cleanliness and sanitation movement along with a plantation drive to mark the 68th Independence Day of India
2. A Delhi court on Friday framed charges against five persons, including three former naval officers and an ex-IAF Wing Commander, in the 2006 Naval War Room leak case.
3. Union Minister of State for Environment, Forest and Climate Change (Independent Charge) Prakash Javadekar addressed the 18th BASIC (Brazil, South Africa, India and China) ministerial meeting on climate change held at New Delhi today.
4. 13 years after dacoit-turned-politician Phoolan Devi was shot dead in Delhi, a city court has convicted main accused Sher Singh Rana. 11 other accused have been let off.
5. Pakistan today handed over to India a BSF jawan Satyasheel Yadav,  who was captured by Pakitan Rangers after he was swept away into their territory by strong currents of Chenab river. 
6. Delhi Metro will run over 600 extra train trips in the span of next two days to cope with the extra rush of commuters expected on the festive occasion of Raksha Bandhan. 

International Affairs

1. The World Health Organization today declared the killer Ebola epidemic ravaging parts of west Africa an "international health emergency" and appealed for global aid to help afflicted countries.
2. External Affairs Minister Sushma Swaraj arrived in Mayanmar on a four-day visit to attend three key multilateral forums including India-ASEAN Foreign Ministers meeting, East Asia Summit, besides bilateral talks with her counterparts from China, Australia and other nations.
3. India and US appoint nodal officers to co-develop and co-produce defence hardware: Defense Ministry.

Business & Economy

• In one of its biggest penalties for non-disclosure of a key earnings ratio, SEBI today imposed a penalty of Rs 13 crore on corporate behemoth Reliance Industries Ltd (RIL) for violation of the Listing Agreement.  

Sports

• Featuring eight teams, the first-of-its-kind World Kabaddi League kickstarting in London on Saturday as Bollywood stars Akshay Kumar and Sonakshi Sinha will add a dash of glamour to the ambitious event. The tournament will be played for four months in USA, England, Canada, UAE and India.
• The selection trials to pick Indian boxers for the upcoming Asian Games in Incheon, South Korea, has been postponed due to request from the medal winners in the recently-concluded Glasgow Commonwealth Games. 

10:00 - By Unknown 0

7th August 2014 - Daily Current Affairs updates

7th August 2014 - Daily Current Affairs updates


National Affairs

1. Today marks the 73rd death anniversary of Kobiguru Rabindranath Tagore.
2. The governors of Chhattisgarh (Balramji Dass Tandon) and Haryana (Kaptan Singh Solanki) met Prime Minister Narendra Modi today, his office informed adding that these were courtesy calls.
3. After hearing a petition filed by Harbhajan Singh, a resident of Haryana and member of SGPC, challenging the constitutional validity of Haryana Sikh Gurudwara (Management) Act, 2014 under which a separate committee was formed to manage the affairs of the Gurudwaras in the state, the Supreme court today directed rival groups SGPC and HSGMC to maintain status quo on the management control of gurudwaras in Haryana till further orders and directed the state government to take all steps to maintain law and order. 
4. With rainfall deficit still prevalent in most parts of the country, government today announced a diesel subsidy for irrigation in states where rainfall shortage is more than 50 per cent to protect the standing kharif crops.
5. The civil services examination will be held as per schedule on August 24, the Government today declared in Parliament.
6. Prime Minister Narendra Modi will commission the country’s largest indigenously-built warship INS Kolkata in Mumbai on August 16. The 6,800-tonne warship, which is over three years behind schedule, will showcase a giant leap in shipbuilding technology in the country.

International Affairs

1. Russia has banned fruit, vegetables, meat, fish, milk and dairy imports from the US, the European Union, Australia, Canada and Norway, Russia's prime minister Dmitry Medvedev told a government meeting Today. This ban was effective immediately and would last for one year.
2. US Defense Secretary Chuck Hagel arrived New Delhi today on a three-day visit and is expected to discuss regional security situation, defense deals worth over Rs 20,000 crore and joint military hardware development projects with the Indian political and military leadership.

New Appointments

1. Gujarat Governor Om Prakash Kohli today assumed the additional charge as the Governor of Goa. He replaced Margaret Alva, who too was holding an additional charge in Goa. Earlier Governor, B V Wanchoo, quit after his name had surfaced in the VVIP chopper deal case.

Science & Technology

• NASA’s Rover Curiosity, the most advanced roving laboratory on Mars, has celebrated its second anniversary on the Red planet. The unmanned spacecraft landed inside the Gale Crater two years ago to start a multi-year mission to seek out areas where life could or may once have existed.

People in News

• A committee headed by former Home Secy R K Singh constituted by Speaker Sumitra Mahajan to review security arrangements in Parliament House
• Harish Chandra Meena, a former DIG in Rajasthan, and Satyapal Singh, former Police Commissioner of Mumbai, are members of this committee.

Business & Economy

• The Union Cabinet has allowed foreign investment in the Railways (100%) for the first time and raised limit for such investment in the defense sector (49%), steps intended to raise funds for expansion of the Railways and encourage domestic manufacture of arms. 
• India's economy is expected to record stronger growth momentum of 5.5% in the current fiscal, underpinned by "solid expansion" in industrial and services sectors, and impetus to economic reforms by the new government, according to a UN report.

09:56 - By Unknown 0

6th August 2014 - Daily Current Affairs updates

6th August 2014 - Daily Current Affairs updates


National Affairs

• Bande Mataram, an English newspaper founded by Bipin Chandra Pal was first published on this day (6th August) in the year 1905
• India has said that it will not compromise the interest of poor farmers and consumers at the WTO and sought complete resolution of the food-grain stockpile issue, which is essential for unhindered implementation of the country's food security programme.
• In the wake of recent tragedy in Pune, the Centre today said it is sending an expert team to assess whether environmental factors were a major cause for the landslide. The devastating landslide last week has claimed 151 lives besides flattening about 45 villages at Malin near Pune and virtually wiped out the village from the map.
• With 247 incidents of communal violence, Uttar Pradesh has earned the dubious distinction of topping the list of states that witnessed riots in 2013 and the situation is no different in 2014 too.
• Lok Sabha passes Securities Law Amendment Bill; the bill seeks to give more power to stock market regulator SEBI

International Affairs

• Today (6th August)  is World Organ Donation Day.
• Tens of thousands of people gathered for peace ceremonies in Hiroshima today, marking the 69th anniversary of the US atomic bombing of the city, as anti-nuclear sentiment runs high in Japan.
• Nepal government today declared dead the 123 people missing in the country's worst landslide in over a decade, taking the death toll from the disaster to 156, as the search for the bodies buried under the debris was called off.
• The18th BASIC Ministerial Meeting, to be held from tomorrow at New Delhi. This two day (7-8 August 2014) meeting will provide an important opportunity to BASIC countries (Brazil, South Africa, India and China) to enhance coordination on important issues under consideration in Climate Change negotiations and arrive at a common position.

Deaths

• Acclaimed cartoonist Pran Kumar Sharma, the man behind cult Indian comics `Chacha Choudhary` and 'Pinki', passed away

Appointments

• NSUI Vice President Roji John elected new NSUI chief succeeding Rohit Choudhary
• NSUI - National Students' Union Of India

People in News

• Mizoram Governor Kamla Beniwal sacked

Business & Economy

• A day after he lowered SLR, the mandatory government bond holding requirements for banks, Reserve Bank Governor Raghuram Rajan on Wednesday said RBI is all for reducing “pre-emptions” over a longer horizon for more efficiency in the financial system.
• The Union Cabinet today has approved liberalisation of FDI in Railways and Defence sectors.

Sports

• The International Cricket Council (ICC) announced today that it will not appeal against the decision to clear England's James Anderson over claims he pushed and abused India's Ravindra Jadeja.

10:43 - By Unknown 0

Indian Fiscal System

Indian Fiscal System


Friends, in our last post we have discussed about Indian Financial System. Today we shall discuss about Indian Fiscal System. It refers to the management of revenue and capital expenditure finances of the state.

Fiscal Policy 
It refers to the use of taxation, public expenditure and the management of the public debt in order to achieve certain specified objectives. These uses can affect the following macroeconomic variables in an economy.

1. Aggregate demand and the level of economic activity.
2. The distribution of income
3. The patter of resource allocation within the government sector and relative to the private sector. 

Sources of Revenue
Main sources of revenue are customs duties, excise duties, service tax, taxes on property, corporate, income taxes.

Sources of Expenditure

• Plan expenditure : It includes agriculture, rural development, irrigation and flood control, energy, industry, minerals, transport and communications etc.
• Non-Plan Expenditure : It consists of interest payments, defense, subsidies, and general services.

Public Debt

• Internal Debt : It comprises loans raised from the open market treasury bills issued to the RBI, Commercial Banks etc.
• External Debt : It consists of loans taken from World Bank ,IMF, ADB and Individual Countries. 

Deficits 
In a budget statement, four types of deficits are mentioned. Those are,

1. Revenue
2. Capital
3. Fiscal
4. Primary

Revenue Deficit
There are various ways to represent and interpret a Government's deficit. The simplest is the revenue deficit which is just the difference between revenue receipts and revenue expenditures.

• Revenue Deficit = Revenue Expenditure - Revenue Receipts

Capital Deficit
An imbalance in a nation's balance of payments capital account, in which payments made by the country for purchasing foreign assets exceed payments received by the country for selling domestic assets. In other words, investment by the domestic economy in foreign assets is less than foreign investment in domestic assets. This is generally not a desirable situation for a domestic economy.

• Capital Deficit = Capital Receipts - Disbursement on Capital Account

Fiscal Deficit
This is the sum of revenue and capital expenditure less all revenue and capital receipts other than loan taken. This gives a more holistic view of the Government's funding situation since it gives the difference between all receipts and expenditures other than loans taken to meet such expenditures.

• Fiscal Deficit = Difference between country expenditure and earnings

• Fiscal Deficit = Revenue receipts (Net Tax Revenue + Non Tax Revenue) + Capital Receipts (only recoveries of loans and other receipts) - Total expenditure (Plan and non-plan)

Primary Deficit
Amount by which a Government's total expenditure exceeds its total revenue, excluding interest payments on its debt.

• Primary deficit = Fiscal Deficit - Interest Payments

23:51 - By Unknown 0

12th Five Year Plan (2012-17) Overview and Highlights

12th Five Year Plan (2012-17) Overview and Highlights


The union cabinet  today approved the 12th Five Year Plan that seeks an average annual economic growth of 8.2 percent and identifies infrastructure, health and education as thrust areas. The growth rate has been lowered to 8.2 percent from the 9.0 percent projected earlier in view of the current slowdown in the economy and adverse international situation. The duration of the plan is 2012 to 2017.
During the 11th Plan period, the average annual growth was 7.9 percent. A full Planning Commission chaired by Prime Minister Manmohan Singh September 15 endorsed the document which has fixed the total plan size at Rs.47.7 lakh crore.
The 12th Plan seeks to achieve 4 percent agriculture sector growth during the five-year period "critical to achieve inclusive growth". Here are some Highlights of the 12th Five Year Plan.

Highlights of 12th Five Year Plan (2012-17):

• Average growth target has been set at 8.2 percent
• Areas of main thrust are-infrastructure, health and education
• Growth rate has been lowered to 8.2 percent from the 9.0 percent projected earlier in view adverse domestic and global situation.
• During the 11th Plan period, the average annual growth was 7.9 percent
•  A full Planning Commission chaired by Prime Minister Manmohan Singh on September 15 endorsed the document which has fixed the total plan size at Rs.47.7 lakh crore
• The 12th Plan seeks to achieve 4 percent agriculture sector growth during the five-year period
• Agriculture in the current plan period grew at 3.3 percent, compared to 2.4 percent during the 10th plan period. The growth target for manufacturing sector has been pegged at 10 percent
• On poverty alleviation, the commission plans to bring down the poverty ratio by 10 percent. At present, the poverty is around 30 per cent of the population.
•  According to commission Deputy Chairperson Montek Singh Ahluwalia, health and education sectors are major thrust areas and the outlays for these in the plan have been raised.
• The outlay on health would include increased spending in related areas of drinking water and sanitation.
• The commission had accepted Finance Minister P. Chidambaram's suggestion that direct cash transfer of subsidies in food, fertilizers and petroleum be made by the end of the 12th Plan period
• After the cabinet clearance, the plan for its final approval would be placed before the National Development Council (NDC), which has all chief ministers and cabinet ministers as members and is headed by the Prime Minister.

Agriculture

• Agriculture in the current plan period has grown at 3.3 percent, compared to 2.4 percent during the 10th plan period. The growth target for manufacturing sector has been pegged at 10 percent.

Infrastructure
The document stresses the importance of infrastructure development, especially in the power sector, and removal of bottlenecks for high growth and inclusiveness. It also sets targets for various economic and social sectors relating to poverty alleviation, infant mortality, enrolment ratio and job creation.
Poverty

• On poverty alleviation, the commission plans to bring down the poverty ratio by 10 percent. At present, the poverty is around 30 per cent of the population.

Health and Education
According to commission Deputy Chairperson Montek Singh Ahluwalia, health and education sectors are major thrust areas and the outlays for these in the plan have been raised.
The outlay on health would include increased spending in related areas of drinking water and sanitation.
The commission had accepted Finance Minister P. Chidambaram's suggestion that direct cash transfer of subsidies in food, fertilizers and petroleum be made by the end of the 12th Plan period.
Direct cash transfers would bring down the government's subsidy burden as the money would go directly to the "genuine" beneficiaries and "plug leakages" in the implementation of these schemes.
After the cabinet clearance, the plan for its final approval would be placed before the National Development Council (NDC), which has all chief ministers and cabinet ministers as members and is headed by the Prime Minister.

23:44 - By Unknown 0

5th August 2014 - Daily Current Affairs updates

5th August 2014 - Daily Current Affairs updates



National Affairs

1. A poem from Nobel laureate Rabindranath Tagore’s masterpiece The Gitanjali was recited by Indian Ambassador to the U.N. Asoke Kumar Mukerji as part of a commemorative ceremony held to mark 100 years of the outbreak of the World War I.
2. Facing about Rs 3,500 crore losses this season, cash-starved private sugar mills in Uttar Pradesh today threatened to shut down operations in the 2014-15 season if the state government does not link cane price with sugar realisation like some other states.
3. Over 27 lakh commuters traveled in the Delhi Metro on Monday (4th August 2014), the highest ridership till date. 

International Affairs

1. As the Ebola virus continues to spread in West Africa, governments and health officials are implementing emergency measures, travel advisories, and a $100-million plan that will deploy hundreds of additional health workers to outbreak hot spots.
2. The World Bank on Monday pledged as much as $200 million in emergency funding to help three West African nations fight the deadly Ebola epidemic following requests from the World Health Organization and officials from the three countries.
3. The World Health Organization says the death toll from the worst record outbreak of Ebola has reached 887, an increase of 158 since the global health body released figures on July 31.
4. Mr. Hakuban Shimomura, the Minister of Education, Culture, Sports, Science and Technology, Japan met the Minister for Human Resource Development, Smt. Smriti Irani today. Both countries agree to further strengthen cooperation in education.

MOUs

• Prasar Bharati and German public service broadcaster, Deutsche Welle sign MoU for distribution of DD India overseas

Books & Authors

• Indian Author Chetan Bhagat's new book 'Half Girlfriend' is due for release this October 

Business and Economy

1. RBI keeps key interest rate unchanged; reduces SLR by 0.5% to 22%; keeps inflation target at 8% by January 2015, 6% by January 2016. Check the Highlights of RBI Third Bi-Monthly Monetary Policy Statement 2014-15 from here.
2. The Competition Appellate Tribunal today upheld an order passed against National Stock Exchange (NSE) by fair trade regulator CCI, which had found the bourse guilty of abusing its dominant market position in currency derivatives segment and had fined it Rs 55.5 crore.

23:39 - By Unknown 0

Highlights of RBI Third Bi-Monthly Monetary Policy Statement 2014-15

Highlights of RBI Third Bi-Monthly Monetary Policy Statement 2014-15



Today, the governor of RBI (Reserve Bank of India) Mr. Raghuram Rajan has presented the Third bi-monthly monetary policy statement for the year 2014-15. In this review he cut the SLR (Statutory Liquidity Ratio) by 50 bps to 22% (last change was made on 3rd June 2014 in Second Bi-Monthly monetary policy). He kept the Repo, Reverse Repo and Cash Reserve Rates unchanged at 8%, 7% and 4% respectively. Below are the key highlights of today's Third Bi-Monthly Monetary Policy review. These changes will be valid upto the fourth bi-monthly monetary policy, which is scheduled on 30th September 2014.
Third Bi-Monthly Monetary Policy Statement 2014-15 Highlights

• Repo rate unchanged at 8.0%;
• CRR unchanged at 4.0%
• SLR reduced by 50 bps from 22.5% to 22.0% with effect from the fortnight beginning 09 August 2014
• Continue to provide liquidity under overnight repos at 0.25% of bank-wise NDTL and liquidity under 7-day and 14-day term repos of up to 0.75% of NDTL of the banking system.
• Upside risks to the target of ensuring CPI inflation at or below 8% by January 2015 remain, although overall risks are more balanced than in June, made RBI to leave the policy rate unchanged.
• With some continuing uncertainty about the path of the monsoon, it would be premature to conclude that future food inflation, and its spill-over to broader inflation.
• Global economic activity has been picking up at a modest space
• Investor risk appetite has buoyed financial markets, partly drawing strength from assurances of continuing monetary policy support in industrial countries.
• Sentiment on domestic economic activity appears to be reviving
• Liquidity conditions have remained broadly stable, barring episodic tightness on account of movements in the cash balances of the Government maintained with the Reserve Bank.
• All categories of capital flows have been buoyant. Surges in capital inflows in excess of the current account financing requirement and the repayment of swaps by oil marketing companies have bolstered international reserves.
• Prospects for reinvigoration of growth have improved modestly. GDP growth forecast of 5.5% within a likely range of 5 to 6% that was set out in the April projection for 2014-15 can be sustained.
• On the other hand, if risks relating to the global recovery, the monsoon and geo-political tensions intensify, the balance of risks could tilt to the downside.
• The Reserve Bank will act as necessary to ensure sustained disinflation.
• The ceiling for banks' total holdings of SLR securities in the HTM category is reduced from 24.5% of their NDTL to 24% of NDTL with effect from 09 August 2014, to enable banks greater participation in financial markets.
• The Reserve Bank will continue to carry forward its banking sector reforms agenda.
• The fourth bi-monthly monetary policy statement is scheduled on 30 September 2014.
• Check new RBI Rates from here 

03:54 - By Unknown 0

4th August 2014 - Daily Current Affairs updates

4th August 2014 - Daily Current Affairs updates


National Affairs

1. India today strongly condemned the "derogatory" article against Tamil Nadu chief minister J Jayalalithaa appearing in the Sri Lankan defence ministry website, as the controversy rocked Parliament with an agitated AIADMK demanding a resolution to denounce it.
2. Government introduces SEBI amendment bill in Lok Sabha. The Securities Laws (Amendment) Bill, 2014, aims to empower capital market watchdog Securities and Exchange Board of India (Sebi) by giving powers such as authority to seek call data records.
3. Today is 85th birth anniversary of legendary Bollywood singer KishoreKumar
4. The IRCTC has been fined Rs one lakh after a cockroach was found in food served in Kolkata Rajdhani, as Railways crack the whip slapping heavy fines totalling Rs 11.50 lakh on nine caterers including its subsidiary for serving "bad quality" food in trains.
5. An all-party meeting today failed to hammer out a consensus over the controversial Insurance Bill which was scheduled to be taken up in Rajya Sabha. Leaders agreed to hold a fresh round of consultations in the next two days as the brief meeting in Parliament House remained inconclusive.

International Affairs

1. The President of the International Fund for Agricultural Development (IFAD), Kanayo F. Nwanze, is visiting India on a 5–day official visit to meet various Union Ministers.
2. A 6.5-magnitude earthquake rattled southwest China's Yunnan province. Nearly 400 killed & about 2,000 others injured.
3. At least 10 people were killed and two injured in South Korea as Typhoon Nakri battered the country’s southern region over the weekend, toppling trees and inundating bridges.
4. India and Nepal have agreed to "review, adjust and update" the Indo-Nepal friendship treaty of 1950 and also decided to find a permanent solution to the boundary issue so that it is not misused by "unscrupulous elements" posing security threats to either side. 
5. PM  Narendra Modi concludes a successful two day Nepal visit and returns to India. Nepal President Ram Baran Yadav told that our PM had won the hearts of the Nepalese people during his two-day visit to Kathmandu, which had provided new hope of development for the Himalayan nation.

 Sports
Referee Virender Malik suspended by Wrestling Federation of India with immediate effect for alleged sexual assault
Commonwealth Games 2014

1. The curtains came down on the 2014 Commonwealth Games with a colorful ceremony that witnessed some power packed performances by famous Scottish singer Lulu, pop band Deacon Blue, Australian singer Kylie Minogue and more than 2,000 performers on Sunday night at the Hampden Park, Scotland's National Stadium.
2. India stood at 5th place with 64 medals (15 Gold, 30 Silver and 19 bronze)
3. England stood top with 174 medals (58 gold, 59 silver and 57 bronze)

09:25 - By Unknown 0

RBI B Grade Exam Review of 3rd August 2014 - Evening Shift

RBI B Grade Exam Review of 3rd August 2014 - Evening Shift

Dear students, I am Abhijit. I appeared for the RBI Grade B Exam yesterday in the Evening shift. It was easier than previous year particularly in GA section. Previous year it was too difficult as maximum questions are asked from the Economics and Finance. Being an Engineering Graduate it was very difficult to answer for me and I attempted nearly 32 questions out of which I scored 26 and failed in this section. But this year I have attempted 60 questions and hoping to score more than 50 and the other sections are moderate.

Some GA questions asked in the Exam.

• Father's Day- June 21
• Finance Minister- Arun Jaitley.
• Who became Minister despite defeat in LS poll- Arun Jaitley
• First foreign visit of Narendra Modi- Bhutan.
• Who accompanied him to Bhutan-Sushma Swaraj
• Which Minister is an ENT Doctor- Harsha Vardhan
• Author of the Book "Low Land".- Jhumpa Leheri
• Fifa World cup final held in which city.Reo de Jenerio
• Ombudsmen highest penalty on bank.
• Question on function of RBI.
• Who was previous RBI governor.-Duvri Subbarao.
• How many Sbi associate banks.
• Which is a Schedule Bank.
• Function of IMF.
• World bank president.
• Which is not an Saarc country. Japan
• What is "C" is SAARC.- cooperation
• CAMELS rating used by which organisation.- RBI 
• 1 basis point is how much.-0.01

Question on Asset Reconstruction companies.

* English has new pattern of fill in the blanks. A little confusing and others are easy.

* Aptitude is ok type but I felt number series are tricky. can be scored more than 25.

* Reasoning was ok if u r good at deriving inference from passage type question u can score more than 50.

My Over all my attempts were
GA- 60
Eng-21
Apt- 20
Reasoning- 35
Total- 136

07:14 - By Unknown 0

Group Banking System

Group Banking System


Friends, in our last post we have discussed about the Unit Banking System. Now we shall discuss abuot the Group Banking System. The group banking system refers to the system of banking under which two or more banks are directly or indirectly controlled by an association, trust or corporation. This type of banking was very common in the USA between 1925 and 1929. The holding company may or may not be a banking company. Although each bank maintains its separate entity, but its business is managed by the holding company. It is not uncommon for such a holding company to be affiliated with larger banks, in which case that bank influences the policies of the whole group.
Advantages of Group Banking
The following are the major advantages of group banking system.

1. Transfer of funds : This system ensures liquidity of financial resources. If a member bank falls short of cash, it can GET it from the other member's bank. Further it is not necessary to maintain a large cash resource by each and every bank of the group banking system.
2. Economies of Large-Scale operations : This system also results in an economy in advertisement expenditure. The cooperation controlling the member banks can insert joint advertisements in the newspapers. Economies of large-scale operations can also be achieved by cutting down operating cost, by purchasing supplies in bulk and improving the efficiencies of the management.
3. Maintaining Separate identity : Under this system, every member's bank retains its own separate identity and maintains its own board of directors. The central administrative office controlling the various members of the group can take steps to improve the level of efficiency in their day to day working.
4. Availability of Experts Services : Since the corporation controlling the member banks in a big sized corporation it can easily obtain the services of experts in the management of the business of the member banks. This helps the member banks to place their investments and banking business on sound lines. 
5. New business : Under this system, the corporation can also take several steps to secure new business for its member banks. 

Disadvantages of Group Banking
The system of group banking also suffers from certain defects. The major defects are discussed as under.

1. Unsound policies : Under the system, a banking corporation as well as a non banking corporation may be subsidiaries of the same holding company and the holding company, in its efforts to secure more profits may overlook sound banking principles, thus landing into troubles. 
2. Lack of efficiency : This system may not be conductive to the achievement of a high level of efficiency in management, because the central administrative office is generally not in a position to enforce codes of discipline on member banks.
3. Corruption : This system also gives rise to corruption because all this stores, etc for the member banks are purchased by one common purchasing organization, which may succumb to pressure, exert by unscrupulous firms. 
4. Emergence of Monopoly : The group banking system may lead to monopolistic tendencies in banking industry.

06:12 - By Unknown 0

Unit Banking System

Unit Banking System


In Unit Banking System, individual bank's operations will be carried out through a single office only. The size and area of operation of a unit bank are smaller as compared to commercial banks. Under this system no branch will be opened. These banks are more prevalent in U.S.A. These banks are usually linked with each other and with the financial centers in the country through correspondent banks. The unit banking system also known as localized banking system.




Advantages of Unit Banking System
Unit Banking system has the following major advantages.

1. Less chances of miss-management : The management and supervision of a unit bank is much easier, and more effective since the size of the bank is small. There are fewer chances of fraud and irregularities in the financial management of the unit banks. Wastage can also be controlled more effectively. 
2. Initiative in Banking Business : Unit bank will be familiarized with the local conditions and environment and hence, will be able to respond to the banking needs of the people.
3. Local development : Under this system, the funds of the unit banks will be utilized for the local development only and are not transferred to other areas.
4. No delay in decision-making : The local officers of the unit bank themselves are competent to take decisions on various problems pertaining to banking business without delay.
5. No monopolistic tendencies : Under this system there is no possibility of generating monopolistic tendencies. 

Demerits of Unit Banking System
The following are the major disadvantages of Unit Banking System

1. Costly Remittance of Funds : As the unit bank has no branches at other places, it has to depend upon the correspondent banks for transfer of funds, which is very expensive and inconvenient for the businessmen. 
2. Inability to Face Crisis : Limited resources of the unit banks restrict their ability to face financial crisis. 
3. Lack of Specialization : Unit banks, because of their small size, are not able to introduce, and get advantage of division of labor and specialization. Such banks cannot afford to employ highly trained and specialized staff.
4. Undue Local Pressure : Since unit banks are highly localized in their business, local pressures and interference may unduly affect the decision making of their officials. 
5. Undesirable Competition : Different managements independently runs Unit banks. This results in undesirable competition among different unit banks. 
6. No banking development in backward areas : Unit banks, because of their limited resources cannot afford to open uneconomic banking business in smaller towns and rural areas. As such, these areas remain unbanked. 

As we have seen above, both the systems suffer from defects, but the branch banking system is better than the unit banking system. But despite this it is unit banking system which has developed in U.S.A. The reason is that the economic conditions in U.S.A are more conductive to the development of unit banking. Branch Banking system has proved more suitable for a backward and under developed country like India. Branch banking system has large financial resources and economies of large operations and competent to face the economic depressions than the unit banking system.

05:21 - By Unknown 1

Questions Asked in RBI Grade B Exam held on 3rd August 2014

Questions Asked in RBI Grade B Exam held on 3rd August 2014


Friends, I am  Prem Rohit Lawaniya. Here I am sharing today's (02-08-2014) RBI Grade B Officer Exam's questions (Morning Session). All the Best.

• Which country does not have 'rupee' as its currency?
• Highest minister in narendra modi's cabinet are from which state?
• Which minister is oldest in age?
• Shanti swaroop bhatnagar prize 2013 is given to?
• Fifa 2014 held at?
• Recently Barak obama is compared with which previous pm and found less popular?
• Rbi give banking license recently to?
• CM of Telangana?
• No. Of women in lok sabha?
• Which organization is not an part of world bank?
• Which is a work of WTO?
• President of IMF?
• How to contact PM of india(given the web addresses)?
• Attorney general of india?
• Ajit kumar doval is?
• Which is not a work of SEBI?
• SLR consists of?
• What rbi do to reduce liquidity from market?
• Which is not related to foreign exchange(give Fema,fera etc)?
• Foreign reserve on 31.3.2014?
• Which of following is not a work of rbi?
• As rupee value is depreciating what will be its effect?
• Which is used for real time transactions one after another in a row?
• As govt leaves some agriculture loans where these are mentioned in bank balance sheet?
• G Padmanabhan committee?
• CEO of apple?
• Actor in Mr. Bean serial?
• Who played the role of detective in bobby jasoos?
• New finance Secretary?
• How much budget for bullet train project?
• CEO of Infosys?
• Germany Chancellor?
• Which company of anil ambani signed an agreement with sbi?
• Which airlines of india have contract in Air asia?
• One question Alfanso mangoes?
• Largest power plant of india?
• Fdi limit in pvt sector banks?
• Which city is not in which plastic currency will be issued as a test?
• What is overdraft facility provided by rbi to govt?
• When rbi issues new currency?(which system like minimum reserve like that)?
• One question on CTS 2010?
• How much invest levied on investment of more then 25 crore of SME's?
• PM dedicated first to navy(vikramaditya)?
• Most expensive city to live?
• World woman day is celebrated on?
• One que on export & import rules?
• Which have the data of all loan takers(cibil rating)?
• Banks show their data sheet in newspapers which of following is not included?(like name of defaulters ,csr activities, CAD etc)
• Which of following can be a mortgage?
• Which of following can not be put as security against loan?
• Intangible assets? 

05:16 - By Unknown 0