Computer Awareness – Book Review

computer-awareness

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.

INDEX OF CONTENT

CHAPTER -1:  HISTORY OF COMPUTERS 
CHAPTER -2:  INTRODUCTION TO COMPUTERS  
CHAPTER -3:  COMPONENTS OF A COMPUTER
CHAPTER -4: HOW DOES A COMPUTER WORKS
CHAPTER -5:  MICROSOFT WINDOWS APPLICATION SOFTWARE
CHAPTER -6: OPERATING SYSTEM SOFTWARES
CHAPTER -7: COMPUTER LANGUAGES   
CHAPTER -8:  INTERNET AND COMPUTER NETWORKS
CHAPTER -9:  PROTECTING AGAINST COMPUTER VIRUS, WORM, TROJANS
CHAPTER -10: MICROSOFT OFFICE APPLICATION SOFTWARE           
CHAPTER -11: MICROSOFT WINDOWS: SHORTCUT KEYS
CHAPTER  : ABBREVIATIONS USED IN COMPUTERS
CHAPTER  : GLOSSARY OF COMPUTER TERMINOLOGY
CHAPTER :  OBJECTIVE TYPE QUESTIONS AND ANSWERS

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 A PRE-REQUISITE FOR SOCIAL ENGINEERING

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..

AN EFFICIENT RISK MANAGEMENT FRAMEWORK IN BANKS IS PARAMOUNT

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.

RISK MANAGEMENT FUNCTION

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.

TYPES OF RISKS

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

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

QUALIFYING JAIIB EXAMS MADE EASY


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.

Plus

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

MODULE A – REGULATIONS AND COMPLIANCE;

MODULE B – LEGAL ASPECTS OF BANKING OPERATIONS;

MODULE C – BANKING RELATED LAWS;

MODULE D – COMMERCIAL LAWS WITH REFERENCE TO BANKING OPERATIONS;

Plus

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-For-Bank-Promotion-exams

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.

Module -A : GENERAL BANKING & FINANCE

Module -B : LENDING, FOREX AND RISK MANAGEMENT

Module -C : LEGAL ASPECTS OF BANKING

Module -D : GENERAL ADMINISTRATION,

PLUS

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.

INDEX OF CHAPTERS

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 -2: INDIAN BANKING SECTOR
CHAPTER -3: REGULATORY MACHINERY IN THE FINANCIAL MARKETS
CHAPTER -4: INDIAN CURRENCY & NOTE ISSUING POLICIES IN INDIA
CHAPTER -5: REPORTS – FINANCIAL & BANKING SECTOR REFORMS IN INDIA           
CHAPTER -6: DEVELOPMENTAL INSTITUTIONS IN INDIA
CHAPTER -7: FINANCIAL PRODUCTS & SERVICES                       
CHAPTER -10: LOAN & ADVANCES PRODUCTS
CHAPTER -11: NON PERFORMING ASSETS                               
CHAPTER -12: FINANCIAL MARKETS-RATING AGENCIES IN INDIA
CHAPTER -13: CAPITAL MARKETS IN INDIA                                
CHAPTER -14: CO-OPERATIVE BANKS & REGIONAL RURAL BANKS 
CHAPTER -15: INSURANCE SECTOR IN INDIA                             
CHAPTER -16: MUTUAL FUNDS IN INDIA
CHAPTER -17: NBFC SECTOR IN INDIA   
CHAPTER-18- CURRENT TOPICS & FINANCIAL TERMS                      
CHAPTER -19: LOGOS OF BANKS AND PUNCHLINES 
CHAPTER -20: FINANCIAL TERMS                                   
CHAPTER -21: ABBREVIATION: BANKING & FINANCE TERMS
CHAPTER -22: GLOSSARY OF BANKING TERMINOLOGY            

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

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.

IBC – 2016 IS A WATERSHED DEVELOPMENT FOR BANKING SECTOR

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.

THE FOREIGN CONTRIBUTION (REGULATION) AMENDMENT ACT, 2020

An NGO is registered under the FCRA Act, 2010 or granted Prior Permission by Central government for receiving and utilising foreign funds/contribution. It can receive and utilize foreign funds/ contribution for a definite cultural, economic, educational, religious or social programme as provided under Section 11 of the Act.

The Act came into force on May 1, 2011 and has been amended twice. The first amendment was made by section 236 of the Finance Act, 2016 and the second by section 220 of the Finance Act, 2018.

Inflow of foreign contributions

A first-ever exercise conducted has revealed that India has at least 31 lakh registered NGOs — more than double the number of schools in the country, 250 times the number of government hospitals, and represent one NGO for 400 people as against one policeman for 709 people.

An amount of over Rs 58,000 crore foreign funds were received by NGOs registered under the FCRA between 2016-17 and 2018-19. The annual inflow of foreign contribution has almost doubled between years 2010 and 2019 but many NGOs/associations have not utilised the funds for the declared or approved purposes, as per their statement of objects.

Many of these were found wanting in ensuring basic statutory compliances such as submission of annual returns. As a result, the Govt. of India cancelled the FCRA certificates of over 19,000 organisations between 2011 and 2019. Besides, criminal investigation were also conducted against dozens of NGOs which indulged in outright misappropriation or misutilisation of foreign contribution.

Key Changes in the Act made now:

Prohibit public servants to receive foreign funds

The amendment bill prohibit ‘public servants’ from receiving any foreign funding. The competent authority, every arbitrator and every officer empowered by the Central Government or the competent authority, while exercising any power or performing any duty under this Act, shall be deemed to be a public servant within the meaning of section 21 of the Indian Penal Code (45 of 1860).  This include a person holding a government office or job by election or appointment; person in public service.

No-sub-granting or transfer of funds

Section 7 of the principal Act stand amended as:

No person who —

(a) is registered and granted a certificate or has obtained prior permission under this Act; and

(b) receives any foreign contribution,

shall transfer such foreign contribution to any other person.

This means an institution registered or having prior permission under FCRA cannot make sub-grant/s to any other intuition from foreign contributions received in its designated FCRA Bank account even if the second recipient or sub-grantee has registration or prior permission under FCRA.  

This amendment will be a major blow to NGOs working collaboratively on projects and programs.

This may also place ‘foreign funding agencies’ or ‘foreign grant-making organizations’ registered under FCRA in difficulty.

Cap on Administrative expenditure

As per Section 8 of the principal Act, in sub-section (1), at present the institutions are allowed to spend up to fifty per cent of foreign funds received during the fiscal year on admin expenditure. The Act now reduce it to twenty percent (max).

This amendment will cause a major blow to the organisations in terms of payment of salaries, professional fees, utility bills, travel and other such expenditure.

Declaring the Bank Account

In section 12 of the principal Act, after sub-section (1), the following sub-section shall be inserted, namely:  “(1A), Every person who makes an application under sub-section (1) shall be required to open FCRA Account in the manner specified in section 17 and mention details of such account in his application.”

Aadhaar of Board Members & Copy of passport and OCI card

The bill provides for the insertion of a new section 12A empowering the Central government to require Aadhaar number, etc. as an identification document.

Section 12(A) to read as : Person/Organisations applying for registration, prior permission or renewal of FCRA registration shall be required to “provide as identification document, the Aadhaar number of all its office bearers or Directors or other key functionaries, by whatever name called, issued under the Aadhaar (Targeted Delivery of Financial and Other Subsidies, Benefits and Services) Act, 2016, or a copy of the Passport or Overseas Citizen of India Card, in case of a foreigner.

Suspension in case of contravention

If the Ministry of Home Affairs “on the basis of any information or report, and after holding a summary inquiry, has reason to believe that a person (person includes an association) who has been granted prior permission has contravened any of the provisions of this Act, it may, pending any further inquiry, direct that such person (or association) shall not utilize the unutilized foreign contribution or receive the remaining portion of foreign contribution which has not been received or, as the case may be, any additional foreign contribution, without prior approval of the Central Government.”

As such, MHA will have the power to freeze the FCRA Bank account in case of any contravention of the FCRA law.

Suspension of registration

Currently the FCRA registration of an organization which violates the provisions of FCRA may be suspended for “such period not exceeding one hundred and eighty days as may be specified”.

Section 13 to read as: The Bill proposes to amend this to “one hundred and eighty days, or such further period, not exceeding one hundred and eighty days, as may be specified”.

This amendment will empower MHA to suspend FCRA registration of an organization for more than six months.

Voluntary surrendering FCRA registration

Under current law there is no provision for an organization to voluntarily surrender its FCRA registration. Section 14(A) of the Act now proposes that on a request being made in this behalf by the organization, MHA may permit any organization to surrender the certificate granted under this Act, if, after making such inquiry as it deems fit, MHA is satisfied that such organization has not contravened any of the provisions of FCRA, and the management of foreign contribution and asset, if any, created out of such contribution has been vested in the competent authority as provided in Section 15(1).

While this amendment will prove to be a boon for organisations no longer interested in receipt of foreign funds, it will be a bane for organisations which may have created assets (e.g. schools, hospitals, vocational training centers) out of foreign funds.

On surrendering FCRA registration, assets created out of foreign contributions may also have to be surrendered to the competent government authority.

Inquiry before renewal of FCRA

Generally, renewal of FCRA registration has been relatively easy for organisations who have been compliant with requirements under FCRA such as filing annual returns in online Form FC-4, quarterly intimation etc.

However, it is stipulated now that MHA, before renewing the certificate, shall make such inquiry, as it deems fit, to satisfy itself that such organization has fulfilled all conditions specified under Section 12(4) of FCRA 2010.

FCRA Bank Account with State Bank of India

Currently person/organisations are required to open their designated FCRA Bank account with any Core Banking Compliant Bank integrated with the Public Financial Management Systems (PFMS).

In Section 17 of the principal Act, the following section shall be substituted, as: —

Sec. 17. (1) Every person who has been granted certificate or prior permission under section 12 shall receive foreign contribution only in an account designated as “FCRA Account” by the bank, which shall be opened by him for the purpose of remittances of foreign contribution in such branch of the State Bank of India at New Delhi, as the Central Government may, by notification, specify in this behalf:

Provided that such person may also open another FCRA Account in any of the scheduled bank of his choice for the purpose of keeping or utilising the foreign contribution which has been received from his FCRA Account in the specified branch of State Bank of India at New Delhi:

Provided further that such person may also open one or more accounts in one or more scheduled banks of his choice to which he may transfer for utilising any foreign contribution received by him in his FCRA account in the specified branch of the State Bank of India at New Delhi or kept by him in another FCRA Account in a scheduled bank of his choice:

(1) Provided also that no funds other than foreign contribution shall be received or deposited in any such account.

(2) The specified branch of the State Bank of India at New Delhi or the branch of the scheduled bank where the person referred to in sub-section (1) has opened his foreign contribution account or the authorised person in foreign exchange, shall report to such authority as may be specified,—

  • the prescribed amount of foreign remittance;
  • the source and manner in which the foreign remittance was received; and
  • other particulars,

in such form and manner as may be prescribed.”

The Bill now proposes that organisations granted registration or prior permission under FCRA shall receive foreign contribution only in an account designated as “FCRA Account” by the bank, which shall be opened by him for the purpose of remittances of foreign contribution in such branch of the State Bank of India at New Delhi, as the Central Government may, by notification, specify in this behalf, provided that such organization may also open another FCRA Account in any other scheduled bank of their choice for the purpose of keeping or utilizing the foreign contribution which has been received from the FCRA Account in the specified branch of State Bank of India at New Delhi.

Thus, from the requirement of having designated FCRA Bank account with any Core Banking Compliant Bank integrated with the Public Financial Management Systems (PFMS) it has now been narrowed down to such branch of the State Bank of India at New Delhi.

The Bill also makes it incumbent on the specified branch of the State Bank of India at New Delhi or the branch of the scheduled bank where the organization has opened the foreign contribution account to report to the government of India, the prescribed amount of foreign remittance; the source and manner in which the foreign remittance was received; and other particulars, in such form and manner as may be prescribed.’.

Rationale for Amendment

The Government of India’s rationale for these draconian and cumbersome amendments can be found in the ‘Statement of Objects and Reasons’. The statement avers:

  1. The annual inflow of foreign contribution has almost doubled between the years 2010 and 2019, but many recipients of foreign contribution have not utilized the same for the purpose for which they were registered or granted prior permission under the said Act.
  2. Many of them were also found wanting in ensuring basic statutory compliances such as submission of annual returns and maintenance of proper accounts. This has led to a situation where the Central Government had to cancel certificates of registration of more than 19,000 recipient organisations, including non-Governmental organisations, during the period between 2011 and 2019.
  3. Criminal investigations also had to be initiated against dozens of such non-Governmental organisations which indulged in outright misappropriation or misutilization of foreign contribution.

Priority Sector Lending Norms

Priority sector Lending targets :

TARGETS/SUB-TARGETS

The scheduled commercial banks are expected to enlarge credit to the priority sector and ensure that priority sector advances constitute 40 percent of the net bank credit and that a substantial portion is directed to the weaker sections. The targets and sub-targets set under priority sector lending for domestic and foreign banks operating in India are as below:

Domestic commercial banks / Foreign banks with 20 & above branchesForeign Banks with less than 20 branches

Regional Rural Banks (RRB) & Small Finance Banks (SFB)
Categories:  Total Priority Sector
40% of Adjusted Net Bank Credit or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.    


 
40% of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher, out of which up to 32% can be in the form of lending to Exports and not less than 8% can be to any other priority sector75% of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher. However, RRBs lending to Medium Enterprises, Social Infrastructure & Renewable Energy shall be reckoned for priority sector achievement only upto 15% of ANBC.
Categories:  Agriculture  
18% of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher, out of which a sub-target of 10% is prescribed for Small and Marginal Farmers- SMFs.No specific target. Forms part of total priority sector target.





18% of ANBC or credit equivalent of Off-Balance Sheet Exposure, whichever is higher, out of which a sub-target of 10%  is for Small & Marginal Farmers (SMFs).


Categories:  Micro Enterprises-MSE
7.5% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure.No specific target. Forms part of total priority sector target.

 
7.5% of ANBC or Credit Equivalent of Off-Balance Sheet Exposure.

Categories:  Advances to Weaker Sections
12% of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.No specific target in the total priority sector target.


For RRBs – 15% and For SFBs – 12% of ANBC or credit equivalent amount of Off-Balance Sheet Exposure, whichever is higher.

Export Credit (not applicable to RRBs and LABs)

Export credit under agriculture and MSME sectors are allowed to be classified as PSL in the respective categories viz. agriculture and MSME. Export Credit (other than in agriculture and MSME) will be allowed to be classified as priority sector as detailed below:

Domestic Banks / WoS of Foreign Banks/ SFBs/ UCBsForeign banks with 20 branches and aboveForeign banks with less than 20 branches
Incremental export credit over corresponding date of the preceding year, up to 2% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher, subject to a sanctioned limit of up to Rs. 40 crore per borrower.Incremental export credit over corresponding date of the preceding year, up to 2% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.Export credit up to 32% of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure, whichever is higher.

For further detailed guidelines, please read our Book – Banking – For Bank Promotion Exams. by N K Gupta….