e-Rupi – CBDC of RBI


Money either has intrinsic value or represents title to commodities that have intrinsic value or title to other debt instruments. In modern economies, currency is a form of money that is issued exclusively by the sovereign (or a central bank as its representative) and is legal tender. Paper currency is a representative money, and it is essentially a debt instrument, means a liability of the issuing central bank (and sovereign) and an asset of the holding public.

Irrespective of the form of money, in any economy, money performs three primary functions – medium of exchange, a unit of account and a store of value. Money as a medium of exchange may be used for any transactions wherein goods or services are purchased or sold. Money as a unit of account can be used to value goods or services and express it in monetary terms. Money can also be stored or conserved for future purposes.

Reserve Bank of India defines CBDC as the legal tender issued by a central bank in a digital form. It is the same as a sovereign currency and is exchangeable one-to-one at par (1:1) with the fiat currency. While money in digital form is predominant in India—for example in bank accounts recorded as book entries on commercial bank ledgers—a CBDC would differ from existing digital money available to the public because a CBDC would be a liability of the Reserve Bank, and not of a commercial bank.

A CBDC is the legal tender issued by a central bank in a digital form which is the same as a fiat currency and is exchangeable one-to-one with the fiat currency. Only its form is different.

CBDC is a digital or virtual currency but it is not comparable to the private virtual currencies that have mushroomed over the last decade. Private virtual currencies sit at substantial odds to the historical concept of money. They are not commodities or claims on commodities as they have no intrinsic value; some claims that they are akin to gold clearly seem opportunistic. Usually, certainly for the most popular ones now, they do not represent any person’s debt or liabilities. There is no ISSUER. They are not money (certainly not CURRENCY).

Features of CBDC

  • CBDC is sovereign currency issued by Central Banks in alignment with their monetary policy.
  • It appears as a liability on the central bank’s balance sheet.
  • Must be accepted as a medium of payment, legal tender, and a safe store of value by all citizens, enterprises, and government agencies.
  • Freely convertible against commercial bank money and cash.
  • Fungible legal tender for which holders need not have a bank account.
  • Expected to lower the cost of issuance of money and transactions.


The adoption of CBDC has been justified for the following reasons:-

  1. Central banks, faced with dwindling usage of paper currency, seek to popularize a more acceptable electronic form of currency (like Sweden);
  2. Jurisdictions with significant physical cash usage seeking to make issuance more efficient (like Denmark, Germany, or Japan or even the US);
  3. Central banks seek to meet the public’s need for digital currencies, manifested in the increasing use of private virtual currencies, and thereby avoid the more damaging consequences of such private currencies.

In addition, CBDCs have some clear advantages over other digital payments systems – payments using CBDCs are final and thus reduce settlement risk in the financial system. Thus, a UPI system where CBDC is transacted instead of bank balances, as if cash is handed over – the need for interbank settlement disappears.

CBDCs would also potentially enable a more real-time and cost-effective globalization of payment systems. It is possible for an Indian importer to pay its American exporter on a real time basis in digital Dollars, without the need of an intermediary. This transaction would be final, as if cash dollars are handed over, and would not even require that the US Federal Reserve system is open for settlement. Time zone difference would no longer matter in currency settlements – there would be no ‘Herstatt’ risk.

India’s high currency to GDP ratio holds out another benefit of CBDCs. Cash usage can be replaced significantly by CBDCs, and as a result the cost of printing, transporting, storing and distributing currency can be reduced significantly.

With the plethora of private virtual currencies (VCs), these VCs might gain recognition, and may cause national currencies with limited convertibility to come under threat. While the freely convertible currencies like the US Dollar may not be adversely affected as most of these VCs are denominated in US Dollar. CBDC could provide the public with uses that any private VC can provide and might retain public preference for the Rupee. Besides, it could also protect the public from the abnormal level of volatility caused by some of these private VCs.

Impact of CBDC on the Banking System

  1. CBDCs can cause a reduction in the transaction demand for bank deposits. Since transactions in CBDCs reduce settlement risk as well, they reduce the liquidity needs for settlement of transactions (such as intra-day liquidity). As a genuinely risk-free alternative to bank deposits, these could cause a shift away from bank deposits which in turn might reduce the need for government guarantees on deposits.
  2. If banks begin to lose deposits over time, their ability for credit creation gets constrained. Besides, as banks lose significant volume of low-cost transaction deposits their interest margin might come under stress leading to an increase in cost of credit. Thus, to minimise the costs of disintermediation it is important to design and implement CBDC in a way that makes the demand for CBDC, vis‑à‑vis bank deposits, manageable.
  3. Availability of CBDC makes it easy for depositors to withdraw balances if there is stress on any bank. Flight of deposits can be much faster compared to cash withdrawal. As such the banks would be motivated to hold a larger level of liquidity which could result in lower returns for commercial banks.
  4. CBDCs are currency and therefore do not pay interest, as such their impact on bank deposits may actually be limited.

Type of CBDC to be issued

CBDC can be classified into two broad types viz. general purpose or retail (CBDC-R) and wholesale (CBDC-W). Retail CBDC would be potentially available for use by all viz. private sector, non-financial consumers and businesses while wholesale CBDC is designed for restricted access to select financial institutions. While, Wholesale CBDC is intended for the settlement of inter-bank transfers and related wholesale transactions, Retail CBDC is an electronic version of cash primarily meant for retail transactions.

It is believed that Retail CBDC can provide access to safe money for payment and settlement as it is a direct liability of the Central Bank. Wholesale CBDC has the potential to transform the settlement systems for financial transactions and make them more efficient and secure. Going by the potential offered by each of them, there may be merit in introducing both CBDC-W and CBDC-R.

CBDC, being a sovereign currency, holds unique advantages of central bank money viz. trust, safety, liquidity, settlement finality and integrity. The key motivations for exploring the issuance of CBDC in India among others include reduction in operational costs involved in physical cash management, fostering financial inclusion, bringing resilience, efficiency, and innovation in payments system, adding efficiency to the settlement system, boosting innovation in cross-border payments space and providing public with uses that any private virtual currencies can provide, without the associated risks. The use of offline feature in CBDC would also be beneficial in remote locations and offer availability and resilience benefits when electrical power or mobile network is not available.

Model for issuance and management of CBDC

There are two models for issuance and management of CBDCs viz. Direct model (Single Tier model) and Indirect model (Two-Tier model). A Direct model would be the one where the central bank is responsible for managing all aspects of the CBDC system viz. issuance, account-keeping and transaction verification.

In an Indirect model, central bank and other intermediaries (banks and any other service providers), each play their respective role. In this model central bank issues CBDC to consumers indirectly through intermediaries and any claim by consumers is managed by the intermediary as the central bank only handles wholesale payments to intermediaries.

The Indirect model is akin to the current physical currency management system wherein banks manage activities like distribution of notes to public, account-keeping, adherence of requirement related to know-your-customer (KYC) and anti-money laundering and countering the terrorism of financing (AML/CFT) checks, transaction verification etc.

Forms of CBDC

CBDC can be structured as ‘token-based’ or ‘account-based’. A token-based CBDC is a bearer-instrument like banknotes, meaning whosoever holds the tokens at a given point in time would be presumed to own them. In contrast, an account-based system would require maintenance of record of balances and transactions of all holders of the CBDC and indicate the ownership of the monetary balances. Also, in a token-based CBDC, the person receiving a token will verify that his ownership of the token is genuine, whereas in an account-based CBDC, an intermediary verifies the identity of an account holder. Considering the features offered by both the forms of CBDCs, a token-based CBDC is viewed as a preferred mode for CBDC-R as it would be closer to physical cash, while account-based CBDC may be considered for CBDC-W.

Degree of Anonymity

For CBDC to play the role as a medium of exchange, it needs to incorporate all the features that physical currency represents including anonymity, universality, and finality. Ensuring anonymity for a digital currency particularly represents a challenge, as all digital transactions would leave some trail. Clearly, the degree of anonymity would be a key design decision for any CBDC. In this regard, reasonable anonymity for small value transactions akin to anonymity associated with physical cash may be a desirable option for CBDC-R.

Distinguishing e-Rupi from UPI

  1. e-Rupi is a currency in digital form enabling digital transactions, whereas UPI is a platform through which transactions happen digitally.
  2. UPI is a payment platform, where one can use debit or credit card, net-banking, mobile wallet etc. to make the payment, while e Rupi is like spending physical money in the digital form, using one’s mobile phone.
  3. The bank acts as an intermediary in every UPI transaction. In UPI app, the bank account is debited and money is sent to the bank of the recipient. User can withdraw the amount from the bank in paper money, retain it in your wallet, and use it to make a purchase at a store. In case of CBDC, the virtual money is drawn and retained in the wallet. When a payment is made at a store or remitted to someone else, the money is transferred from user’s wallet to their wallet. The bank does not route payments or act as a middleman and no settlement takes place unlike UPI payment. Thus, e-Rupi is operated and settled by the RBI and does not entail any individual handlers, as is the case of UPI transactions where account settlement takes place at the individual bank’s level..
  4. Transactions in digital rupee may offer the same anonymity as cash transactions. Banks shall not report low-value transactions made through the digital rupee. Once the e-Rupi is transferred to customer wallets, banks will not track or report these transactions. Currently, cash transactions above Rs. 50,000 require customers to disclose their permanent account number. While no limit has been set for digital rupee transactions for now, it is believed that retail transactions up to Rs 50,000 will not be reported. Transactions in excess of Rs 2 lakh will however have to be reported for tax purposes.
  5. Depending upon the banks and user platforms, the UPI handle or ID varies. Even linking two different platforms with the same bank account may generate different UPI IDs. Whereas, in the case of e-Rupi, the digital rupee is operated by RBI and would have a single User Public Key.
  6. e-rupi will allow offline transactions which can be carried out even on a feature phones, promoting its adoption in rural and remote areas as well. A e-rupi voucher will be shared with the beneficiary through an SMS or QR code which will enable its use in rural and remote areas as well where internet connectivity can be a problem.  

Pilot project on CBDC

The RBI has launched its pilot project on the digital rupee on 1st November 2022, to use central bank digital currency (CBDC) in the wholesale market for secondary trade in government securities. Nine banks, namely SBI, HDFC, Kotak Mahindra, Bank of Baroda, Union Bank of India, ICICI Bank, Yes Bank, IDFC First bank and HSBC are participating in this pilot project. 

As per RBI, this pilot project is expected to make the interbank market more efficient. Settlement in central bank money would reduce transaction costs by pre-empting the need for settlement guarantee infrastructure or for collateral to mitigate settlement risk”. Other wholesale transactions and cross-border payments will be the focus of future pilots, based on the learnings from this one. 

Some key issues under examination are –

  • The scope of CBDCs – whether they should be used in retail payments or also in wholesale payments;
  • The underlying technology – whether it should be a distributed ledger or a centralized ledger, for instance, and whether the choice of technology should vary according to use cases;
  • The validation mechanism – whether token based or account based,
  • Distribution architecture – whether direct issuance by the RBI or through banks;
  • The degree of anonymity etc.

The second pilot project for retail participation in the central bank digital currency (CBDC) commenced on December 1, in four cities and with four banks. The pilot project will cover select locations in a closed user group (CUG) comprising of participating customers and merchants. Digital rupee for the retail segment would be in the form of a digital token that represents legal tender, issued in the same denominations in which paper currency and coins are currently issued. The token will be distributed through the intermediary banks.

Users will be able to transact with e₹-R through a digital wallet offered by the participating banks and stored on mobile phones/devices. Transactions can be both person-to-person (P2P) and person-to-merchant (P2M).

Payments to merchants can be made using QR codes displayed at merchant locations. The e₹-R would offer features of physical cash like trust, safety and settlement finality.

Wholesale CBDC (e₹-W) and Retail CBDC (e₹-R)
  • Wholesale CBDC is applicable to financial institutions that hold reserve deposits with a central bank – it includes institutions which can lend money and make cross-border payments. In case of cross-border agreements, the central bank acts as a counterparty. 
  • In contrast, the digital currency issued to the general public is known as Retail CBDC. RBI has said that it plans on introducing retail CBDC within a month in specific localities among closed user groups made of customers and merchants.

Currently, the banks have a rupee account and a bond account with the RBI. Under the pilot project, they will be opening an additional CBDC account which will be connected to RBI’s CBDC node/server. The banks can then transfer CBDCs to their CBDC accounts in exchange for cash. Thereafter, sales or purchases of bonds can be done between CBDC accounts through the CCIL platform without any intermediaries.

The pilot project will firmly put India on the list of countries who are in advanced stages of having their own digital currency. It will make the following changes in how banks operate in relation to the central bank and to each other:

  1. Currently, interbank transfers are made through the CCIL and settled through net settlement (i.e. at the end of the period, CCIL gives the figure of the amount of money to be paid/received by the bank for the overall quantum of transactions). However, with the CBDC, banks will transfer currency directly and thus, gross settlement will take place.
  2. Currently it takes one day under the T+1 system for money to be transferred. But under the CBDC regime, money can be transferred almost immediately between banks. The facility will most likely be available round-the clock throughout the year.

Cryptocurrencies – Welcome to the Wonderland of Casino


Cryptocurrency is a digital payment system that does not rely on the banks to verify transactions. It is a peer-to-peer system that can enable anyone anywhere to send and receive payments. Instead of being physical money carried around and exchanged in the real world, cryptocurrency payments exist purely as digital entries to an online database describing specific transactions. When you transfer cryptocurrency funds, the transactions are recorded in a public ledger. Cryptocurrency is stored in digital wallets.

Cryptocurrency received its name because it uses encryption to verify transactions. This means advanced coding is involved in storing and transmitting cryptocurrency data between wallets and to public ledgers. The aim of encryption is to provide security and safety.

Bitcoin:  Introduced in 2009, Bitcoin was the first cryptocurrency and is still the most commonly traded. The currency was developed by Satoshi Nakamoto – widely believed to be a pseudonym for an individual or group of people whose precise identity remains unknown.

Ethereum: Developed in 2015, Ethereum is a blockchain platform with its own cryptocurrency, called Ether (ETH) or Ethereum. It is the most popular cryptocurrency after Bitcoin.

Litecoin:  This currency is most similar to bitcoin but has moved more quickly to develop new innovations, including faster payments and processes to allow more transactions.

Ripple:   Ripple is a distributed ledger system that was founded in 2012. Ripple can be used to track different kinds of transactions, not just cryptocurrency.

Non-Bitcoin cryptocurrencies are collectively known as “altcoins” to distinguish them from the original.

How does Cryptocurrency work

Cryptocurrencies run on a distributed public ledger called blockchain, which keeps a record of all transactions updated and held by the currency holders. Blockchain describes the way transactions are recorded into “blocks” and time stamped. It’s a fairly complex, technical process, but the result is a digital ledger of cryptocurrency transactions that is hard for hackers to tamper with.

Units of cryptocurrency are created through a process called mining, which involves using computer power to solve complicated mathematical problems that generate coins. Users can also buy the currencies from brokers, then store and spend those using cryptographic wallets.

Anyone holding or owning cryptocurrency, actually do not own anything tangible. What they get is a key that allows movement or transfer of a record or a unit of measure from one person to another without a trusted third party.

In addition, such transactions require a two-factor authentication process. For instance, the user might be asked to enter a username and password to start a transaction. Then, they might have to enter an authentication code sent via text to their personal cell phone.

Unlike government-backed money, the value of virtual currencies is driven entirely by supply and demand. It is pertinent to mention that much of the interest in cryptocurrencies is to trade for profit, with speculators at times driving prices skyward. This create wild swings that produce significant gains for investors or big losses. And cryptocurrency investments are subject to far less regulatory protection than traditional financial products like stocks, bonds, and mutual funds.

While securities are in place, that does not mean cryptocurrencies are “un-hackable”. Several high-dollar hacks have cost cryptocurrency start-ups heavily. In 2018, the hackers hit Coincheck to the tune of $534 million and BitGrail for $195 million, making them two of the biggest cryptocurrency hacks of the recent times.

How to buy cryptocurrency

There are typically three steps involved:

Step 1: Choosing a platform

The first step is deciding which platform to use. Generally, you can choose between a traditional broker or a dedicated cryptocurrency exchange:

  • Traditional brokers. These are online brokers who offer ways to buy and sell cryptocurrency, as well as other financial assets like stocks, bonds, and ETFs. These platforms tend to offer lower trading costs but fewer crypto features.
  • Cryptocurrency exchanges. There are many cryptocurrency exchanges to choose from, each offering different cryptocurrencies, wallet storage, interest-bearing account options, and more. Many exchanges charge asset-based fees.

When comparing different platforms, the buyer may consider which crypto currencies are on offer, what fees they charge, their security features, storage and withdrawal options, and any educational resources.

Step 2: Funding your account

Most crypto exchanges allow users to purchase crypto using fiat currencies (i.e., government-issued) such as the US Dollar, the British Pound, or the Euro using their debit or credit cards. Crypto purchases with credit cards are considered risky, and some exchanges don’t support them. Some credit card companies do not allow crypto transactions either. This is because cryptocurrencies are highly volatile, and it is not advisable to risk going into debt — or potentially paying high credit card transaction fees — for certain assets.

Some platforms will also accept ACH transfers and wire transfers. The accepted payment methods and time taken for deposits or withdrawals differ per platform.  

Step 3: Placing an order

A buyer may also place an order via the broker’s or exchange’s web or mobile platform. They may buy cryptocurrencies, by selecting “buy” option and choosing the order type, entering the amount of cryptocurrencies to be purchased, and confirming the order. The same process applies to “sell” orders.

The other mode to invest in crypto include payment services like PayPal, Cash App and Venmo, besides the following investment vehicles:

  • Bitcoin trusts: One can buy shares of Bitcoin trusts with a regular brokerage account. These vehicles give retail investors exposure to crypto through the stock market. 
  • Bitcoin mutual funds: There are Bitcoin ETFs and Bitcoin mutual funds to choose from. 
  • Blockchain stocks or ETFs: One can also indirectly invest in crypto through blockchain companies that specialize in the technology behind crypto and crypto transactions. Alternatively, you can buy stocks or ETFs of companies that use blockchain technology.

How to store cryptocurrency

Usually, cryptocurrency is stored in crypto wallets, which are physical devices or online software used to store the private keys to your cryptocurrencies securely. Some exchanges provide wallet services, making it easy to store directly through the platform. However, not all exchanges or brokers automatically provide wallet services for the users.

There are different wallet providers to choose from : “hot wallet” and “cold wallet”.

  • Hot wallet storage: “hot wallets” refer to crypto storage that uses online software to protect the private keys to your assets.
  • Cold wallet storage: Unlike hot wallets, cold wallets (also known as hardware wallets) rely on offline electronic devices to securely store your private keys.

Cryptocurrency investment scams

Some of the most common crypto scams include:

Fake websites

Scammers sometimes create fake cryptocurrency trading platforms or fake versions of official crypto wallets to trick unsuspecting victims. These fake websites usually have similar but slightly different domain names from the sites they attempt to mimic. They look very similar to legitimate sites, making it difficult to tell the difference. Fake crypto sites often operate in one of two ways:

  • As phishing pages: All the details you enter, such as your crypto wallet’s password and recovery phrase and other financial information, end up in the scammers’ hands.
  • As straightforward theft: Initially, the site may allow you to withdraw a small amount of money. As your investments seem to perform well, you might invest more money in the site. However, when you subsequently want to withdraw your money, the site either shuts down or declines the request.

Phishing scams

Crypto phishing scams often target information relating to online wallets. Scammers target crypto wallet private keys, which are required to access funds within the wallet. Their method of working is similar to other phishing attempts and related to the fake websites described above. They send an email to lure recipients to a specially created website asking them to enter private key information. Once the hackers have acquired this information, they steal the cryptocurrency in those wallets.

Pump and dump schemes

This involves a particular coin or token being hyped by fraudsters through an email blast or social media such as Twitter, Facebook, or Telegram. Crypto traders rush to buy the coins, which drive up the price. Having succeeded in inflating the price, the scammers then sell their holdings – which causes a crash as the asset’s value sharply declines. This can happen quickly, within a few minutes.

Fake apps

Another common way scammers trick cryptocurrency investors is through fake apps available for download through Google Play and the Apple App Store. Although these fake apps are quickly found and removed, that doesn’t mean the apps aren’t impacting many bottom lines. Thousands of people have downloaded fake cryptocurrency apps. 

Fake celebrity endorsements

Crypto scammers sometimes pose as or claim endorsements from celebrities, businesspeople, or influencers to capture the attention of potential targets. Sometimes, this involves selling phantom cryptocurrencies that do not exist to novice investors. These scams can be sophisticated, involving glossy websites and brochures that appear to show celebrity endorsements from household names, such as Elon Musk.

Giveaway scams

This is where scammers promise to match or multiply the cryptocurrency sent to them in what is known as a giveaway scam. Clever messaging from what often looks like a valid social media account can create a sense of legitimacy and spark a sense of urgency. This supposed ‘once-in-a-lifetime’ opportunity can lead people to transfer funds quickly in the hope of an instant return.

Blackmail and extortion scams

Another method scammers use is blackmail. They send emails that claim to have a record of adult websites visited by the user and threaten to expose them unless they share private keys or send cryptocurrency to the scammer.

Cloud mining scams

Cloud mining refers to companies that allow you to rent mining hardware they operate in exchange for a fixed fee and a share of the revenue you will supposedly make. In theory, this allows people to mine remotely without buying expensive mining hardware. However, many cloud mining companies are scams or, at best, ineffective – in that you end up losing money or earning less than was implied.

How to protect yourself from cryptocurrency scams

  • Protect your wallet: To invest in cryptocurrency, the user needs a wallet with private keys. If a firm asks to share your keys to participate in an investment opportunity, it is highly likely to be a scam. Keep your wallet keys private.
  • Keep an eye on your wallet app: The first time you transfer money, send only a small amount to confirm the legitimacy of a crypto wallet app. If you’re updating your wallet app and you notice suspicious behavior, terminate the update, and uninstall the app.
  • Only invest in things you understand: If it is not clear as to how a particular cryptocurrency works, then it is best to pause and do further research before you decide whether to invest.
  • Take your time: Scammers often use high-pressure tactics to get you to invest your money quickly – for example, by promising bonuses or discounts if you participate straightaway. Take your time and carry out your own research before investing any money.
  • Be wary of social media adverts: Crypto scammers often use social media to promote their fraudulent schemes. They may use unauthorized images of celebrities or high-profile businesspeople to create a sense of legitimacy, or they may promise giveaways or free cash. Maintain a healthy skepticism when you see crypto opportunities promoted on social media and must do your due diligence.
  • Ignore cold calls: If someone contacts you out of the blue to sell a crypto investment opportunity, it’s probably a scam. Never disclose personal information or transfer money to someone who contacts you in this way.
  • Only download apps from official platforms: Although fake apps can end up in the Google Play Store or Apple App Store, it is safer to download apps from these platforms than elsewhere.
  • Do your research: The most popular cryptocurrencies are not scams. But if you haven’t heard of a particular cryptocurrency, research it – see if there is a whitepaper you can read, find out who runs it and how it operates, and look for genuine reviews and testimonials. Look for an up-to-date and credible fake cryptocurrency list to check for scams.
  • Is it too good to be true: Companies that promise guaranteed returns or promise to make rich overnight are likely to be scams. If something seems too good to be true, tread carefully.

What to do if you fall victim to a crypto scam

Falling victim to a cryptocurrency scam can be devastating, and it is essential to act quickly if you have made a payment or disclosed personal information.

Contact your Bank immediately if you have:

  • Made a payment using a debit or credit card.
  • Made a payment via bank transfer.
  • Shared personal details about yourself.

Computer Awareness – Book Review


Today’s book review article is about IBCA book on Computer Awareness subject, which is the most acclaimed and among the top ranking books for Computer Aptitude to help you score high and qualify the competitive exams.  I am going to discuss about Computer Awareness published by IBC Academy Publications, which is surely a must have book for all the serious candidates who appear in any competitive exams, be it Banking, LIC-AAO, Railways, State Civil Services exams, SSC, Defense etc. The book covers an extensive range of relevant topics on Computer Aptitude and definitely gives you a comprehensive coverage on the subject and virtually carry no error in content or typing.

As the technology and artificial intelligence is pervading almost all segments of the society, be it education, work environment and even houses, the knowledge of Computers and the related subjects have become very essential for the job aspirants. Whether they are taking Banking exams or State level Civil Services exams, SSC, LIC-AAO, Railways or Defense sector, the candidates are expected to possess good knowledge of the computer skills and knowledge.

Computer Awareness by N K Gupta is a comprehensive book which contain all the relevant topics required for the basic knowledge of Computers. Beginning with a description on the history of computers, the book provides an introduction to computers and explains the various components that constitute it. It then explains the different software and hardware elements that constitute a computer and are responsible for its functioning. It also explains the Internet and computer networks and how to prevent and cure trojans, worms, and viruses. The last few chapters of the book explain Microsoft Office and its shortcuts, the different computer terms generally encountered, and questions and answers of the objective-type. Additionally, the book contains 1250 multiple choice questions in 25 Test papers and 12 Practice sets.

Reasons why you should buy only IBCA Book on Computer Awareness:

1. Most comprehensive and accurate information on the subject.
2. Unlike others, IBCA book on Computer Awareness is written by an Ex-Banker – N K Gupta, with 26 years of experience and who joined SBI group as a Probationary Officer (PO).
3. The book is updated continuously and what you get is most updated and cogent content.
4. The Book has over 1250 MCQs which prepares you for the most of the competitive exams.
5. The content of the Book is very useful for Group discussions/Personal Interviews also.

The Book contains a list of Banking Terminology also.

There are a number of random books on Computer Awareness subject with sketchy contents and assorted question bank which are just not sufficient to cover such a vast subject. Many Publications have focused on offering a limited content at a low price tag but in the process they have seriously compromised on the contents. The aspirants of Competitive exams. must avoid such sub-standard books and the FREE content available on internet, which may be sub-standard, inaccurate or incomplete and may compromise with their level of preparations.



As you may observe that the book also contains several sets of Objective Type Questions, with answers. The Objective Type Questions section contains a set of 52 papers comprising of 1250 Multiple Choice Questions. This help the candidates prepare for all the competitive exams conducted by Banking, LIC-AAO, Railways, State Civil Services exams, SSC, Defense etc. The coverage of the study material is exhaustive.

The Book is written in a clear and lucid style, focusing on the important points and concepts that candidates need to understand in order to get a good score in the exam. The text also includes short notes sections which help the candidates do a quick review of concepts.

About The Author

N K Gupta is an experienced Banking Sector professional with over 26 years of experience. He has also written other books like Banking Awareness, Marketing Awareness, Cracking the Job Interviews, Banking – for Bank Promotion exams. … and many more.

N K Gupta is a management graduate. He is a senior banker with over two and a half decades of experience working in the industry. He started his career as a Probationary Officer in the State Bank Group.

About IBC Academy Publications

IBC Academy Publications books are rich in content and quality and updated periodically, to ensure that the candidates get the top quality book which make them succeed in coveted competitive exams. In addition, the books also contain an exhaustive 1250 plus Multiple choice questions, on the pattern of various competitive exams. conducted by Banking, LIC-AAO, Railways, State Civil Services exams, SSC, Defense etc..

Get your copy today and start your preparations today ….


Financial Inclusion is the pursuit of making financial services, such as access to payments and remittance facilities, savings, loans and advances, insurance services etc. – accessible at affordable costs to all individuals and businesses, irrespective of net worth and size, respectively. Financial inclusion strives to address and suggest solutions to the constraints that exclude people from participating in the financial sector.

In India, emphasis on Financial Inclusion is on ensuring access to appropriate financial products and services needed by vulnerable groups, such as weaker sections and low income groups at an affordable cost in a fair and transparent manner by mainstream Institutional players.

The Government of India and the Reserve Bank of India have been making concerted efforts to promote financial inclusion as one of the important national objectives of the country. Some of the major efforts made in the last five decades include – nationalization of banks, building up of robust branch network of scheduled commercial banks, co-operatives and regional rural banks, introduction of mandated priority sector lending targets, lead bank scheme, formation of self-help groups, permitting BCs/BFs to be appointed by banks to provide door step delivery of banking services, zero balance BSBD accounts, etc. The fundamental objective of all these initiatives is to reach the large sections of the hitherto financially excluded Indian population.

Financial Inclusion – RBI Policy Initiatives

RBI has adopted a “bank-led model” for achieving financial inclusion and removed all regulatory bottle necks in achieving greater financial inclusion in the country. Further, for achieving the targeted goals, RBI has created conducive regulatory environment and provided institutional support for banks in accelerating their financial inclusion efforts.1. Regulatory dispensation on KYC norms: Know Your Customer (KYC) requirements for opening bank accounts relaxed with deposit transaction caps with deposit transaction caps for low volume transactions low volume transactions.

2. Simplified branch authorization: Domestic Scheduled commercial banks are permitted to freely open branches in centers with population less than 50,000. To step up opening of branches in rural areas for increased banking penetration and consequent financial inclusion, banks are mandated by RBI to allocate 25 % of the total number of branches in unbanked rural centers.

3. Business Correspondent/ Business Facilitator Model (BC/BF): In 2006, Reserve Bank introduced BC/BF model for carrying out banking activities on behalf of banks. In 2010 ‘For Profit Companies’ were allowed as BCs of banks. BC is only a pass through agent of the bank.

In India, RBI initiated several measures to achieve greater financial inclusion, such as :

1. Opening of no-frills accounts:Basic banking no-frills account with nil or very low minimum balance as well as charges that make such accounts accessible to vast sections of the population. Banks have been advised to provide small overdrafts also in such accounts.

2. Relaxation on “know-your-customer” (KYC) norms : KYC requirements for opening bank accounts were relaxed for small accounts in August 2005, thereby simplifying procedures by stipulating that introduction by an account holder who has been subjected to the full KYC drill would suffice for opening such accounts. The banks were also permitted to take any evidence as to the identity and address of the customer to their satisfaction. It has now been further relaxed to include the letters issued by the Unique Identification Authority of India containing details of name, address and Aadhaar number.

3. Engaging business correspondents (BCs):In January 2006, RBI permitted banks to engage business facilitators (BFs) and BCs as intermediaries for providing financial and banking services. The BC model allows banks to provide doorstep delivery of services, especially cash in-cash out transactions, thus addressing the last-mile problem. The list of eligible individuals and entities that can be engaged as BCs is being widened from time to time. With effect from September 2010, for-profit companies have also been allowed to be engaged as BCs.

4. Use of technology:As technology has the potential to address the issues of outreach and credit delivery in rural and remote areas in a viable manner, banks have been advised to make effective use of information and communications technology (ICT), to provide doorstep banking services through the BC model where the accounts can be operated by even illiterate customers by using biometrics, thus ensuring the security of transactions and enhancing confidence in the banking system.

5. Adoption of EBT: Banks have been advised to implement EBT by leveraging ICT-based banking through BCs to transfer social benefits electronically to the bank account of the beneficiary and deliver government benefits to the doorstep of the beneficiary, thus reducing dependence on cash and lowering transaction costs.

6. General Purpose Credit Card facility (GCC) : With a view to helping the poor and the disadvantaged with access to easy credit, banks have been asked to consider introduction of a general purpose credit card facility up to Rs.25,000 at their rural and semi-urban branches. The objective of the scheme is to provide hassle-free credit to banks’ customers based on the assessment of cash flow without insistence on security, purpose or end use of the credit.

Read the complete chapter on Prevention Of Money Laundering Act, 2002   in Book – Legal & Regulatory Aspects Of Banking by N K Gupta. The book is available in e-book format and is available at Bankerz at deep discounted prices    .. Know more..


In times of volatility and fluctuations in the market, financial institutions need to prove their mettle by withstanding the market variations and achieve sustainability in terms of growth and well as have a stable share value. Hence, an essential component of risk management framework would be to mitigate all the risks and rewards of the products and service offered by the bank. Thus, the need for an efficient risk management framework is paramount in order to factor in internal and external risks.

Indian Banks have been making great advancements in terms of technology, quality, quantity as well as stability such that they have started to expand and diversify at a rapid pace. However, such expansion brings these banks into the context of risk especially at the onset of increasing Globalization and Liberalization. Risks play a major part in the earnings of a bank and other financial institutions. Higher the risk, higher is the return. Hence, it is most essential to maintain parity between risk and return. Management of Financial risk incorporating a set systematic and professional method especially those defined by the Basel II norms are an essential requirement of banks. The more risk averse a bank is, the safer is their Capital base.

Banks, in the process of financial intermediation, are confronted with various kinds of financial and non-financial risks, viz., credit risk, interest rate risk, foreign exchange rate risk, liquidity risk, equity price risk, commodity price risk, legal risk, regulatory risk, reputation risk, operational risk, etc. These risks are highly independent/interdependent events that affect the bank/financial institution.


The broad parameters of risk management function should cover:
a. Organisational structure
b. Comprehensive risk measurement approach
c. Risk management policies approved by the board, which should be consistent with the broader business strategies, capital strength, management expertise and overall willingness to assume risk
d. Guidelines and other parameters used to govern risk taking, including detailed structure of prudential limits
e. Strong MIS for reporting, monitoring and controlling risks
f. Well laid out procedures, effective control and comprehensive risk reporting framework
g. Separate risk management organisation/ framework independent of operational departments and with clear delineation of levels of responsibility for management of risk
h. Periodical review and evaluation.

Risk Management Structure

Each bank should set risk limits after assessing its risks and the risk-bearing capacity. At organisational level, the task of overall risk management is assigned to an independent Risk Management Committee. The purpose of this top level committee is to empower one group with full responsibility of evaluating overall risks faced by the bank and determining the level of risks which will be in the best interest of the bank. The functions of Risk Management Committee are essentially to identify, monitor and measure the risk profile of the bank. The committee also develops policies and procedures, verifies the models that are used for pricing complex products, reviews the risk models as development takes place in the markets and also identifies new risks.

Loan Review Mechanism (LRM)

It is an effective tool for constant evaluation of the quality of loan book and for bringing about qualitative improvements in credit administration. Banks have, therefore, used Loan Review Mechanism (LRM) for large value accounts with responsibilities assigned in various areas such as, evaluating the effectiveness of loan administration, maintaining the integrity of credit grading process, assessing the loan loss provision, portfolio quality, etc. The main objectives of LRM could be to:

a. promptly identify loans which develop credit weaknesses and initiate timely corrective action,
b. evaluate portfolio quality and isolate potential problem areas,
c. to provide information for determining adequacy of loan loss provision,
d. assess the adequacy of and adherence to loan policies and procedures, and to monitor compliance with relevant laws and regulations,
e. to provide top management with information on credit administration, including credit sanction process, risk evaluation and post-sanction follow-up.

Accurate and timely credit grading is one of the basic components of an effective LRM. Credit grading involves assessment of credit quality, identification of problem loans, and assignment of risk ratings. A proper Credit Grading System should support evaluating the portfolio quality and establishing loan loss provisions.


The Reserve Bank of India guidelines issued in October, 1999 has identified and categorized the majority of risk into three major categories, viz. :
1. Credit Risk
2. Market Risk
3. Operational Risk

The type of risks can be fundamentally subdivided in primarily of two types :
a. Financial risks would involve all those aspects which deal mainly with financial aspects of the bank. These can be further sub-divided into Credit Risk and Market Risk. Both Credit and Market Risk may be further sub-divided.
b. Non-Financial risks would entail risk faced by the bank in its regular workings, i.e. Operational Risk, Strategic Risk, Funding Risk, Political Risk, and Legal Risk.


Credit risk is defined as the possibility of losses associated with diminution in the credit quality of borrowers or counterparties. In a bank’s portfolio, losses stem from outright default due to inability or unwillingness of a customer or counterparty to meet commitments in relation to lending, trading, settlement and other financial transactions. Alternatively, losses result from reduction in portfolio value arising from actual or perceived deterioration in credit quality. Credit risk emanates from a bank’s dealings with an individual, corporate, bank, financial institution or a sovereign.

Credit risk may take the following forms:
a. Direct lending: Principal and/or interest amount may not be repaid.
b. Guarantees or letters of credit: Funds may not be forthcoming from the constituents Upon crystallization of the liability.
c. Treasury operations: The payment or series of payments due from the counter parties under the respective contracts may not be forthcoming or ceases.
d. Securities trading businesses: Funds/securities settlement may not be effected.
e. Cross-border exposure: The availability and free transfer of foreign currency funds may either cease or restrictions may be imposed by the sovereign.

Credit risk can be further classified in the following types:
*    Credit default risk – The risk of loss arising from a debtor being unlikely to pay its loan obligations in full or the debtor is more than 90 days past due on any material credit obligation; default risk may impact all credit-sensitive transactions, including loans, securities and derivatives.
*    Concentration risk – The risk associated with any single borrower or group of borrowers with the potential to produce large enough losses to threaten a bank’s core operations. It may arise in the form of single borrower concentration or industry concentration.
*    Country risk – The risk of loss arising from a sovereign state freezing foreign currency payments (transfer/ conversion risk) or when it defaults on its obligations (sovereign risk).

Read the complete chapter on Risk Management And BASEL Accord  in e-Book – Principles & Practices of Banking by N K Gupta. The book is available in e-book format and is available at Bankerz at deep discounted prices .. Know more


A fresher joining the banking sector deal with several challenges on job, in the form of extended working hours, demanding customers and unyielding bosses. Many would hardly remember how the times flies and they are set now for new challenges in their career… planning for upward movement in their career amid big challenges and enormous competition from their fellow colleagues and peers.

And the first step in this direction is to gain enough knowledge and guidance on “how to pass JAIIB in first attempt.” Right!!

The reasons are obvious that clearing the JAIIB exams. i.e., Junior Associate of Indian Institute of Bankers not only unlock an extra increment in their early stages of banking career but also opens avenues for qualifying to appear in internal promotion exams. conducted by their respective Banks.

JAIIB exams. conducted by IIBF is held twice a year (usually in the months of June and December) and over 1.50 lacs banking professionals from pan-India appear for this exam. The competition is tough as only 20-22% candidates finally clear the exams. and out of which there could be less than 5% who clear these exams in their FIRST attempt.

Does this mean that JAIIB is difficult to clear? I say NO.

On should start early and study regularly but methodically to qualify the coveted exam. without much heart burn. There are enough available resources around you, but are they conform to quality and are they updated to the latest syllabus requirements? Always select good quality study materials and books and meticulously follow these. Do not follow the crap available online which are mostly out-dated and half-baked contents. After all, nothing good comes FREE in this materialistic world. They basically want your attention so as to sell something which you would not look otherwise at in the normal course.

IBC Academy Publications (IBCA) is started by a veteran and Senior Banking Professional, who himself had cracked several Bank P.O. exams., nearly 3 decades ago. He joined State Bank Group as Probationary Officer and later moved to Private Sector Banking Industry for better prospects.

Author N K Gupta – is a career senior ex-banker who has written several popular books related to Banking and related other competitive exams.

IBCA books are meticulously compiled and updated with the latest subject content in the backdrop of important RBI guidelines You can buy these books at discounted rates on our website.

JAIIB Exam Pattern

The JAIIB examination comprise of three papers, details thereof are mentioned below:

  1. Principles and Practices of banking.
  2. Accounting and Finance for Bankers
  3. Legal and Regulatory Aspects of Banking.

JAIIB Exam Cut Off

The cut-off marks are the minimum marks that applicants must get in order to qualify for the certificate.

JAIIB 2022 – Cut-off Calculation

The following are the major points that are involved in calculating the JAIIB Cut off 2022:

  • Each subject requires a minimum score of 50 out of 100 to pass.
  • Candidates who obtain at least 45 marks in each subject and a total of 50 per cent in all examination subjects in a single attempt will be declared to have passed the examination.
  • Candidates will be able to keep credits for subjects they passed in an attempt until the time restriction for passing the examination has expired.
  • There is no negative marking in the paper, so you can attempt all the questions. But remember, there is a time limit (2 hours).

JAIIB Exams: Time stipulations

Candidates should clear the exam within the time limit of two years (in 4 attempts max.). If you do not pass the exam within the allotted time, you must re-enrol as a fresh student, and in such cases the institute will give no credit. For the first try, a two-year time limit will begin on the date of application. Attempts will be counted regardless of whether or not an applicant presents for any examination.

Principles and Practices of Banking

Principles and Practices of Banking book for JAIIB banking paper is the most updated book in the market. The book comprise of exhaustive 45 chapters covering the latest syllabus of IIBF-JAIIB/ DB&F exams. It also has a section of 10 Test Papers sets of Multiple Choice Questions, which is sure to help you practice well and prepare for the forthcoming JAIIB exam.

Table of Content:

MODULE – A: Indian Financial System;

MODULE – B: Functions of Bank;

MODULE – C: Banking Technology;

MODULE – D: Support Services – Marketing of Banking Product & Services;

MODULE E – Ethics in Banks and Financial Institutions.


SECTION – II : 10 Sets of multiple choice questions Paper. 

The book has updated coverage of all Five Modules as per IIBF syllabus, covering chapters on Banking, Marketing, Computerization in banking, Ethics in banking, to name a few as – Various types of customers and relationships, Banking regulation, Lending, Agriculture Finance, Risk management, Capital markets, Mutual Funds, KYC norms, Basel Accord, Risk Management, Bank Computerization, Marketing concepts, Ethics in Banking and many more topics as per JAIIB/DB&F course syllabus.

Legal And Regulatory Aspects of Banking

Legal and Regulatory Aspects of Banking book has updated coverage of Legal paper of JAIIB and is the most updated book in the market. This book comprise of exhaustive 38 chapters covering the latest syllabus of IIBF-JAIIB/ DB&F exams. and also a section of 10 Test Papers sets of Multiple Choice Questions, which is sure to help you practice well and prepare for the forthcoming JAIIB exam. The book with unparalleled coverage.

Table of Content






SECTION – II – 10 Sets of Practice Tests.

The book include important topics, such as – IBC Code, GST Act, Payment Bank and Small Finance Bank, Escrow and Trust and Retention Arrangement etc. and it is way ahead of other similar books. The book contain all Four Modules covering entire syllabus – viz. Regulation of banking business, different types of borrowers, types of Credit Facilities, Funded and Non-Funded credit facilities, creation and charge on securities, various laws relating to collecting and paying Banks, SARFAESI Act, IBC Code, Banking Regulation Act, Negotiable Instrument Act, SARFAESI Act, Tax laws & GST Act, Bankers Book of Evidence Act, Consumer Protection Act etc.

JAIIB Refresher

JAIIB Refresher is the top rated Exams. preparatory book on JAIIB exams., comprise of over 3200 Multiple Choice Questions covering all the three subjects under IIBF-JAIIB/ DB&F exams. and conform to the latest syllabus of IIBF. The book comprise of 20 sets of Test papers for each three subjects, a total of 60 sets, which covers entire gamut of questions from the IIBF-JAIIB syllabus, and represent mirror copies of Test paper of JAIIB/DB&F exams. conducted by IIBF. The test papers covers questions from all Modules under Paper-Principles & Practices of Banking –such as Computer & Banking Technology, Marketing of Banking Products as well as newly introduced Module on Ethics in Banks and Financial Institutions.

The question bank also covers case studies and topical questions under Legal & Regulatory Aspects of Banking and Accounting & Finance for Bankers. JAIIB Refresher is designed to help the busy bankers to brush up their preparations in the shortest possible time and assure superlative performance and score high in their JAIIB/DB&F exams. for which the aspiring banking professionals find the book very useful. 

What are you waiting for? Go ahead and start your preparations for the ensuing exams. with IBCA books.

Cracking Bank Promotion Exams Made Easy


Banking sector is currently facing acute sortage of employees and thus most of the Public sector Banks are contemplating internal promotions to fill the vacuum with young and bright officers. The unabated growth of bad loans, tremendous pressure on profitability and almost stagnant growth of Banking sector has put pressure on Bank management to scout for fresh energy and recruit and place young banking professionals at strategic positions.

Banking – For Bank Promotion Exams. is a comprehensive book meant for the banking professionals who aspire to shape up their career in the banking sector and are about to appear for their internal Promotional exams, be it for Clerks cadre to Officers in JMG Scale –I to MMG Scale II or MMG Scale II to MMG Scale III in PSU Banks. The book provides in-depth knowledge about the banking sector, banking laws, credit theories and practices and would cover almost the whole gamut of banking and related concepts. The book is compiled by a Senior ex-banker and therefore, the content of the book are carefully assorted to help you succeed in the endeavour.

The book comprise of extensive 40 chapters in over 800 pages, which covers various aspects of banking. The author has taken extreme care to collate the most required topics at one place for you to prepare for the coveted career promotion exam. and that you do not waste time and resources and miss the golden opportunity that the time has endowed upon you.

The book is segmented into 4 modules which extensively cover the most relevant chapters suitable for bank promotion tests of banks under public sector, co-operative sector as wel as the private sector.






Section – 2 include 20 SETS of Test papers to help you practice well.

This is the most comprehensive book available today for Bank Promotion exams. in PSU Banks, Co-operative sector banks, Urban Co-operative Banks or RRBs. The rich content of the book shall not only help you excel in your career but also help you perform better in your day-to-day professional life.


Chapter-1    Bank and Bank Deposits
Chapter-2    Credit Facilities – Fund based and Non Funded
Chapter-3    Retail, Wholesale and International Banking
Chapter-4    Ancillary Services and E-Products
Chapter-5    Banker-Customer Relationship
Chapter-6    KYC Guidelines and Money Laundering
Chapter-7    Financial Inclusion And Self-Help Group
Chapter-8    Government Sponsored Schemes
Chapter-9    Priority Sector Lending Norms
Chapter-10   MSME Sector and Micro Credit
Chapter-11   NRI Deposits and Other Products
Chapter-12   Payment & Collection of Cheques and N I Act
Chapter-13  Money Markets, Capital Market and Forex Markets
Chapter-14  Retail Lending Products
Chapter-15  Ratio Analysis
Chapter-16   Assessment of Credit Limits
Chapter-17  Modes of Charging Securities
Chapter-18  Loan Documentations
Chapter-19  Risk Management & BASEL Accord
Chapter-20  Non-Performing Assets
Chapter-21  Management of Non-Performing Assets
Chapter-22  Bankers Books Evidence Act, 1891
Chapter-23  SARFAESI Act
Chapter-24  Recovery of Debts due to Banks and Financial Institutions Act, 1993(DRT Act)
Chapter-25  The Law of Limitation
Chapter-26  Insolvency And Bankruptcy Code, 2016
Chapter-27  The Legal Services Authorities Act, 1987
Chapter-28  Tax Laws
Chapter-29   Indian Contract Act, 1872
Chapter-30   Indian Partnership Act, 1932
Chapter-31   The Companies Act
Chapter-32  Foreign Exchange Management Act, 1999
Chapter-33   Transfer of Property Act, 1882
Chapter-34   The Right to Information Act, 2005
Chapter-35   The Prevention of Money Laundering Act, 2002
Chapter-36   The Consumer Protection Act, 1986 and CERSAI
Chapter-37   Clean Note Policy and Cash Management
Chapter-38  Customer Service, BCSBI and Compensation Policy
Chapter-39  Current Banking Topics
Chapter-40  Abbreviations

About the Author

N K Gupta, a senior ex-banker with over 28 years of working experience with SBI group and various Private sector Banks, is the author of several popular books on banking competitive exams. These Books are a result of a careful research and continuous updation over the time.

Banking Awareness – Book Review

Today’s book review article is about IBCA book on Banking & Financial Awareness subject, which is a top ranking book in fetching good marks and help you score high and qualify the coveted Banking exams. I am going to talk about Banking Awareness -4th ed. released by IBC Academy Publication, which is a must have book for the serious candidates who wish to cover many important subjects with comprehensive coverage and virtually no error in content or typing.

Aspirants for a career in the banking sector have to sit for job recruitment exams conducted by the IBPS or individual banks. Whether they are taking Bank PO or Clerical post exams, candidates are expected to possess good knowledge of the sector. And, this book is a must for those appearing for interviews in the Banking or Financial sector.

Recently, the emphasis of the exams has been shifting to focus more on the aspirant’s knowledge of the financial sector, with special reference to the banking field. So, books like – Banking Awareness can help candidates acquire good knowledge of the functioning of banks. The book is divided into various sections covering fundamental concepts related to banking and financial sectors, such as Insurance, Mutual Funds, Stock Markets, various Govt. Sponsored Schemes, etc. The book also deal with cogent topics on the Indian Banking Sector, Financial Markets, Financial Products & Services, and Currency and Note-Issuing Policies.

5 reasons why you should buy only IBCA Book on Banking Awareness:

1. This is the most comprehensive book on this subject and contain accurate information on the select topics relevant for banking exams.
2. Unlike others, IBCA book on Banking Awareness is written by an Ex-Banker with 26 years of experience and who joined SBI group as a Probationary Officer (PO).
3. The book is updated continuously and what you get is most updated topics.
4. The Book has over 1500 MCQs which prepares you for the most of the competitive exams.
5. The content of the Book is very useful for Group discussions/Personal Interviews also.

Index of Content

CHAPTER -1: FINANCIAL MARKETS IN INDIA                            
CHAPTER -7: FINANCIAL PRODUCTS & SERVICES                       
CHAPTER -11: NON PERFORMING ASSETS                               
CHAPTER -13: CAPITAL MARKETS IN INDIA                                
CHAPTER -15: INSURANCE SECTOR IN INDIA                             
CHAPTER -20: FINANCIAL TERMS                                   

The text also covers topics like Financial & Banking Sector Reforms, Bank Accounts & Negotiable Instruments, Customer Relationship, Developmental Institutions,Capital Markets, NBFC and Insurance Sectors, Co-operative Banks & Regional Rural Banks and Loans & Advance Products. The Book also contains a Glossary and Abbreviations list of Banking Terminology.

The book also contains 15 sets of Objective Type Questions, with answers.

The Objective Type Questions section contains 15 set of Mock Tests comprising of 1050 Multiple Choice Questions. This help the candidates prepare for all the different bank exams conducted by the IBPS and various institutions like RBI and SBI. The coverage of the study material is exhaustive.

The Book is written in a clear and lucid style, focusing on the important points and concepts that candidates need to understand in order to get a good score in the exam. The text also includes short notes sections which help the candidates do a quick review of concepts.

About The Author

N K Gupta is an experienced Banking Sector professional with over 26 years of experience. He has also written other books like Handbook on Computer Awareness, Handbook on Marketing Awareness, Cracking the Job Interviews … and many more.

N K Gupta is a management graduate. He is a senior ex-banker with over two and a half decades of experience working in the industry. He started his career as a Probationary Officer in the State Bank Group.


Reading is a healthy habit, which not only improve your mental faculty but helps you in many other ways in your day-to-day life. Some feels that reading helps them score well academically and to get higher marks in exams., some gets a habit to read to help keep them busy and entertain themselves. While, for some it is therapeutically soothing as it helps their mental faculty strong and prevent disease like Alzheimer.

Whenever you read a good book, somewhere in the world

a door opens to allow in more light.     

–Vera Nazarian

Reading is one of the most fundamental skills a child needs to learn to succeed in life. Developing good reading habits is vital to your child’s future not just academically, but in everyday life as well. What can good reading habits do for your child’s development?

Here are five good reasons you should develop reading habits:

  • Good reading habits prepare students excel academically: Students who spend a lot of time reading, prior to attending school or colleges will surely have an easier time adapting to the reading-focused learning environment in their classrooms.
  • Reading develops vocabulary: The more you read, the more new words will find their way into your vocabulary. Reading good books exposes you to words and phrases that you might not use as part of normal speech. If you remain sensitive and alert, it would surely expand your vocabulary and expand your horizon as how to use these new words into sentences, while you talk or debate as well as use these in your next essay or article.
  • Reading increases attention span: Encouraging good reading habits from an early age develops your child’s attention span and allows them to focus better and for longer periods of time. Reading combats the epidemic of poor attention span in today’s children.
  • Reading develops your thirst for knowledge: Good reading habits enable one to learn more about the world around them, appreciate the beauty and secrets of nature, find scientific and logical explanations to your doubts. It helps you develop an interest in other cultures and society. Reading leads to asking questions, and seeking answers, which means you learn more every day.
  • Developing reading habits early leads to a lifelong love of books:  Those who start reading regularly from an early age are more likely to enjoy reading later in life. This not only help them well throughout their education and career but beyond to develop their personality and intellect to a greater level.

Develop good reading habits and motivate your loved ones to read regularly by:

  1. Gifting books of their interest, be it a comic, fiction, spiritual, cookery or a yoga book
  2. Ensure that they finish one book at least in a month
  3. Encourage them to speak a few words about what they have read and learnt new recently
  4. Encourage them to gift the book to someone unfortunate who cannot afford to buy these. This would spread the reading worm.

“Read what you find interesting, and then follow your interests. You’ll find that in doing so you always generate enough to illuminate the next step.”
― Mark Helprin

Buying books has become so convenient these days with online webstores, which offers so many choices and great discounts. You do not have to navigate your way to a book store, share the burden of parking your vehicle half-a-mile away, choose among the limited variety of books and compromise with your choices. Simply log on to bankerz.in and start exploring your world of happiness.


The enactment of the Insolvency and Bankruptcy Code, 2016 in May 2016 was a watershed development and it has far-reaching implications for the banking sector in India.  The fulcrum of a robust and resilient banking sector is a comprehensive bankruptcy regime. It enables a sound debtor-creditor relationship by protecting the rights of both, by promoting predictability and by ensuring efficient resolution of indebtedness.

In India, the extant legal and institutional machinery for dealing with debt default, either through the Indian Contract Act, 1872 or through special laws such as the Recovery of Debts Due to Banks and Financial Institutions Act, 1993 and the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest (SARFAESI) Act, 2002 has not been utilised well by banks.

Similarly, action through the Sick Industrial Companies (Special Provisions) Act, 1985 and the winding up provisions of the Companies Act, 1956 have neither aided prompt recovery by lenders nor swift restructuring of indebted firms.

The Insolvency and Bankruptcy Code, 2016 (IBC) is the bankruptcy law of India which seeks to consolidate the existing framework by creating a single law for insolvency and bankruptcy. The Insolvency and Bankruptcy Code, 2015 was introduced in Lok Sabha in December 2015. It was passed by Lok Sabha on 11 May, 2016. The IBC Code received the assent of the President of India on 28 May, 2016.

The bankruptcy code is a one stop solution for resolving insolvencies which, earlier was a long drawn process and did not offer an economically viable arrangement. A strong insolvency framework where the cost and the time incurred is minimised in attaining liquidation has been long overdue in India.

The Insolvency and Bankruptcy Code, 2016 (IBC) deals with insolvency and bankruptcy by consolidating and amending various laws relating to re-organisation and insolvency resolution. The IBC covers individuals, companies, limited liability partnerships, partnership firms and other legal entities as may be notified (except financial service providers) and is aimed at creating an overarching framework to facilitate the winding up of business or engineering a turnaround or exit. The IBC aims at insolvency resolution in a time-bound manner (180 days, extendable by another 90 days under certain circumstances) undertaken by insolvency professionals.

Salient Features of Insolvency and Bankruptcy Code, 2016 (IBC)

Under the provisions of the Code, insolvency resolution can be triggered at the first instance of default and the process of insolvency resolution has to be completed within the stipulated time limit. The institutional infrastructure under the IBC, 2016 rests on four pillars, namely:The first pillar of institutional infrastructure is a class of regulated persons – the ‘Insolvency Professionals’. They assist in the completion of insolvency resolution, liquidation and bankruptcy proceedings and are governed by ‘Insolvency Professional Agencies’, who will develop professional standards and code of ethics as first level regulators.

The second pillar of institutional infrastructure are ‘Information Utilities’, which would collect, collate, authenticate and disseminate financial information. They would maintain electronic databases on lenders and terms of lending, thereby eliminating delays and disputes when a default actually takes place.

The third pillar of the institutional infrastructure is adjudication. The NCLT is the forum where cases relating to insolvency of corporate persons will be heard, while DRTs are the forum for insolvency proceedings related to individuals and partnership firms. These institutions, along with their Appellate bodies, viz., the National Company Law Appellate Tribunal (NCLAT) and the Debt Recovery Appellate Tribunal (DRAT), respectively, will seek to achieve smooth functioning of the bankruptcy process.

The fourth pillar is the regulator‘The Insolvency and Bankruptcy Board of India’. This body has regulatory oversight over insolvency professionals, insolvency professional agencies and information utilities.

For individuals, the Code provides for two distinct processes, namely, “Fresh Start” and “Insolvency Resolution”, and lays down the eligibility criteria for these processes. The Code also establishes a fund (the Insolvency and Bankruptcy Fund of India) for the purposes of insolvency resolution, liquidation and bankruptcy of persons. A default-based test for entry into the insolvency resolution process permits quick intervention when the corporate debtor shows early signs of financial distress.

On the distribution of proceeds from the sale of assets, the first priority is accorded to the costs of insolvency resolution and liquidation, followed by the secured debt together with workmen’s dues for the preceding 24 months. Central and State Governments’ dues are ranked lower in priority. The code proposes a paradigm shift from the existing ‘debtor in possession’ to a ‘creditor in control’ regime. Priority accorded to secured creditors is advantageous for entities such as banks.

When a firm defaults on its debt, control shifts from the shareholders / promoters to a Committee of Creditors to evaluate proposals from various players about resuscitating the company or taking it into liquidation. This is a complete departure from the experience under the Sick Industrial Companies Act under which delays led to erosion in the value of the firm.

Empirical evidence shows that a conducive institutional environment and an appropriate insolvency regime are key factors in recovery of stressed assets, apart from loan characteristics.

In order to further strengthen the insolvency resolution process, the Government has notified The Insolvency and Bankruptcy Code (Amendment) Ordinance, 2017 on November 23, 2017. The Ordinance provides for prohibition of certain persons from submitting a resolution plan and specifies certain additional requirements for submission and consideration of the resolution plan before its approval by the committee of creditors.

These are excerpts of the few pages of ebook – Legal & Regulatory Aspects Of Banking by N K Gupta.

Read the complete chapter on IBC Code in Book – Legal & Regulatory Aspects Of Banking by N K Gupta.