General Affairs
Oriental Bank Of Commerce fraud: Sugar company chief, directors booked by CBI
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The Central Bureau of Investigation (CBI), on Sunday, raided 8 premises in connection with bank fraud case of Rs 109 crore, after Oriental Bank of Commerce filed the complained.
The agency has also booked the Chairman and Managing Director (CMD) of Simbhaoli Sugars Limited, Gurmit Singh Mann and 8 others in connection with the case.
Searches have been conducted at one location in Hapur, one location in Noida and 6 locations in Delhi after registering a bank fraud case of Rs 109 Crore (approx) related to Oriental Bank of Commerce, said the CBI.
According to the complaint by the Oriental Bank of Commerce, it allegedly sanctioned a loan amounting to Rs 148.60 crore in the year 2011 to Simbhaoli Sugars Limited.
The loan was sanctioned for financing individual/Joint Liability Groups (JLG) /Self Help Groups (SLG) / sugarcane farmers under the tie-up arrangement under RBI Scheme to 5,762 sugarcane farmers supplying sugar produce to Simbhaoli Sugars Limited during the period from Januray 25, 2012 to March 13, 2012, which was dishonestly and fraudulently diverted by the company for its own needs.
The account turned Non Profitable Assets (NPA) on March 31, 2015 and was later declared as fraud by the bank to RBI on May 13, 2015 for an amount of Rs 97.85 crore.
According to CBI, In addition to the existing NPA dated March 31, 2015, the bank, under Multiple Banking arrangements sanctioned another corporate loan of Rs 110 crore to the accused sugar company on January 28, 2015, to pay its outstanding loan of Rs 97.85 crore, and they adjusted the total liability of Rs 112,94,99,471 of said private company on June 30, 2016 by way of deposit of this new corporate Loan.
The corporate loan, too, turned NPA on November 29, 2016, thus resulting in its first outstanding loan of Rs 97.85 crore (as alleged fraud) and the fresh Corporate Loan of Rs 109.08 crore (as fresh outstanding), added CBI.
Raids were conducted are at eight premises including residences of Directors, factory, corporate office and registered office of the company in Delhi, Hapur and Noida.
The agency has booked Simbhaoli Sugars Limited, its CMD Gurmit Singh Mann, Gural Singh (Dy. MD), GSC Rao (CFO), Gursimaran Kaur Mann (Executive Director, Commerical), 4 executive directors of the sugar company and unknown bank officials under section 13(2) r/w 13(1)(d) of PC Act 1988 for causing loss of Rs 109.08 crore(approximately) to the bank.
The agency has also booked the Chairman and Managing Director (CMD) of Simbhaoli Sugars Limited, Gurmit Singh Mann and 8 others in connection with the case.
Searches have been conducted at one location in Hapur, one location in Noida and 6 locations in Delhi after registering a bank fraud case of Rs 109 Crore (approx) related to Oriental Bank of Commerce, said the CBI.
According to the complaint by the Oriental Bank of Commerce, it allegedly sanctioned a loan amounting to Rs 148.60 crore in the year 2011 to Simbhaoli Sugars Limited.
The loan was sanctioned for financing individual/Joint Liability Groups (JLG) /Self Help Groups (SLG) / sugarcane farmers under the tie-up arrangement under RBI Scheme to 5,762 sugarcane farmers supplying sugar produce to Simbhaoli Sugars Limited during the period from Januray 25, 2012 to March 13, 2012, which was dishonestly and fraudulently diverted by the company for its own needs.
The account turned Non Profitable Assets (NPA) on March 31, 2015 and was later declared as fraud by the bank to RBI on May 13, 2015 for an amount of Rs 97.85 crore.
According to CBI, In addition to the existing NPA dated March 31, 2015, the bank, under Multiple Banking arrangements sanctioned another corporate loan of Rs 110 crore to the accused sugar company on January 28, 2015, to pay its outstanding loan of Rs 97.85 crore, and they adjusted the total liability of Rs 112,94,99,471 of said private company on June 30, 2016 by way of deposit of this new corporate Loan.
The corporate loan, too, turned NPA on November 29, 2016, thus resulting in its first outstanding loan of Rs 97.85 crore (as alleged fraud) and the fresh Corporate Loan of Rs 109.08 crore (as fresh outstanding), added CBI.
Raids were conducted are at eight premises including residences of Directors, factory, corporate office and registered office of the company in Delhi, Hapur and Noida.
The agency has booked Simbhaoli Sugars Limited, its CMD Gurmit Singh Mann, Gural Singh (Dy. MD), GSC Rao (CFO), Gursimaran Kaur Mann (Executive Director, Commerical), 4 executive directors of the sugar company and unknown bank officials under section 13(2) r/w 13(1)(d) of PC Act 1988 for causing loss of Rs 109.08 crore(approximately) to the bank.
Modi lambastes Congress in Puducherry, asks people to compare dynasty-led govts with 'development-oriented' NDA
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Prime Minister Narendra Modi today lashed out at the Congress, saying that one family had ruled the country for over four decades, and asked the people to compare the dynasty-led governments with the "development-oriented" NDA.
"One family either directly or indirectly ruled the country for 48 years," he told a public meeting organised by the BJP in Puducherry, referring to the governments of Jawaharlal Nehru, Indira Gandhi and Rajiv Gandhi.
On the other hand, he said, there was the NDA government which will complete 48 months this May.
Intellectuals can debate the difference between what was achieved during the Congress regimes and the BJP-led NDA, he said.
Targeting the Congress government in Puducherry, he said the union territory had poor infrastructure and was a victim of "Congress culture".
Modi asserted that the BJP would win the coming Assembly elections in Karnataka and other states, and said the Congress would be left with only the V Narayanasamy government in Puducherry.
He did not refer to the Amarinder Singh-led Congress government in Punjab.
"I want to congratulate the Chief Minister of Puducherry because the Congress is going to exhibit him as a specimen after June," he said predicting the defeat of the Congress in the other states.
"One family either directly or indirectly ruled the country for 48 years," he told a public meeting organised by the BJP in Puducherry, referring to the governments of Jawaharlal Nehru, Indira Gandhi and Rajiv Gandhi.
On the other hand, he said, there was the NDA government which will complete 48 months this May.
Intellectuals can debate the difference between what was achieved during the Congress regimes and the BJP-led NDA, he said.
Targeting the Congress government in Puducherry, he said the union territory had poor infrastructure and was a victim of "Congress culture".
Modi asserted that the BJP would win the coming Assembly elections in Karnataka and other states, and said the Congress would be left with only the V Narayanasamy government in Puducherry.
He did not refer to the Amarinder Singh-led Congress government in Punjab.
"I want to congratulate the Chief Minister of Puducherry because the Congress is going to exhibit him as a specimen after June," he said predicting the defeat of the Congress in the other states.
Yogi Adityanath reaches Mathura to attend world famous Lathmaar Holi
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Keeping his promise, chief minister Yogi Adityanath on Saturday reached Mathura to attend the world famous Lathmaar Holi celebration in Barsana.
However, due to the unexpected crowd and gathering of the locals, his programme was limited to the jhanda poojan, a ceremony where the religious flag of the Huriyaars (male participants who come from Nand Gaon village of Lord Krishna) is worshipped.
Haryana chief minister Manohar Lal Khattar also joined Yogi at the event. "Lord Krishna was born and brought up here but he delivered the holy preaching of Geeta in Kurukshetra (Haryana). I would like to ensure that money will not be a factor in the development of this sacred Braj region," said Yogi.
It is to be mentioned that he had visited Mathura right after becoming CM. He also started celebrating Diwali in Ayodhya last year.
"In the last 11 months, Eid and Christmas have also been celebrated and I would also like to ensure that the people in UP have all the freedom to express their religious beliefs," Yogi said.
However, due to the unexpected crowd and gathering of the locals, his programme was limited to the jhanda poojan, a ceremony where the religious flag of the Huriyaars (male participants who come from Nand Gaon village of Lord Krishna) is worshipped.
Haryana chief minister Manohar Lal Khattar also joined Yogi at the event. "Lord Krishna was born and brought up here but he delivered the holy preaching of Geeta in Kurukshetra (Haryana). I would like to ensure that money will not be a factor in the development of this sacred Braj region," said Yogi.
It is to be mentioned that he had visited Mathura right after becoming CM. He also started celebrating Diwali in Ayodhya last year.
"In the last 11 months, Eid and Christmas have also been celebrated and I would also like to ensure that the people in UP have all the freedom to express their religious beliefs," Yogi said.
At massive Meerut congregation, RSS attempts to correct image after Mohan Bhagwat's comments on Army
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It was a massive muscle flexing by the Sangh ahead of the 2019 General Elections. 3.1 lakh of its cadres assembled at a huge ground in Meerut which is touted to be the biggest ever congregation in the history of Rashtriya Swayamsevak Sangh (RSS).
Ahead of the 2019 general elections, as many as 3.1 lakh cadres of the Rashtriya Swayamsevak Sangh (RSS), assembled in Meerut on Sunday. The gathering is touted to be the biggest ever congregation in the organisation's history.
A senior RSS functionary told India Today that the event was held to mobilise and embolden ground-level cadres. The choice of venue was deliberate.
READ | RSS in rural India will be key to Narendra Modi's victory in 2019, says Mohan Bhagwat
"Because its India's most populous state, hence it is important for any electoral victory, and Meerut because it has a large minority population," he added.
IMAGE CORRECTION
Today's congregation was also about careful image correction. Mohan Bhagwat, the sarsanghchalak of the RSS, stressed on the role the Sangh played during 1971 India-Pakistan war. He put up a counter-narrative to the Congress' argument that the RSS had played no role whatsoever during India's Independence.
Bhagwat even narrated the tale of an RSS cadre who alerted the BSF during the 1971 war and claimed he was martyred.
The story has an uncanny resemblance to a controversial comparison Bhagwat recently made between the Army and the Sangh.
Some political experts say that through this massive show of strength, the RSS has also sent a subtle message to the BJP, which holds the upper hand in the power equation between the two.
Ahead of the 2019 general elections, as many as 3.1 lakh cadres of the Rashtriya Swayamsevak Sangh (RSS), assembled in Meerut on Sunday. The gathering is touted to be the biggest ever congregation in the organisation's history.
A senior RSS functionary told India Today that the event was held to mobilise and embolden ground-level cadres. The choice of venue was deliberate.
READ | RSS in rural India will be key to Narendra Modi's victory in 2019, says Mohan Bhagwat
"Because its India's most populous state, hence it is important for any electoral victory, and Meerut because it has a large minority population," he added.
IMAGE CORRECTION
Today's congregation was also about careful image correction. Mohan Bhagwat, the sarsanghchalak of the RSS, stressed on the role the Sangh played during 1971 India-Pakistan war. He put up a counter-narrative to the Congress' argument that the RSS had played no role whatsoever during India's Independence.
Bhagwat even narrated the tale of an RSS cadre who alerted the BSF during the 1971 war and claimed he was martyred.
The story has an uncanny resemblance to a controversial comparison Bhagwat recently made between the Army and the Sangh.
Some political experts say that through this massive show of strength, the RSS has also sent a subtle message to the BJP, which holds the upper hand in the power equation between the two.
GOBAR-Dhan Yojana to Artificial Intelligence: Highlights from PM Modi's Mann Ki Baat today
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In the 41st edition of his monthly radio programme, Mann Ki Baat, Prime Minister Narendra Modi today talked about Artificial Intelligence and how it can be used to improve lives of the poor, farmers and the needy people.
The PM said, "Science and technology are value neutral. They do not have their own intelligence but it depends on us what work we want to take from that machine. And here the human objective guides the outcome of the technology."
Modi also referred to his last month visit's to Ahmedabad along with his Israeli counterpart Benjamin Netanyahu and finished his address with Holi wishes to all.
TOP 10 QUOTES FROM PM MODI'S MANN KI BAAT
An online trading platform will be set up for 'GOBAR- Dhan' yojana which will help connect farmers to buyers of agricultural waste.
GOBAR- Dhan Yojana can be seen as a source of income for the farmers in rural areas since it will help converting waste into biogas.
It's our duty to ensure equal participation of women in every sphere of social and economic life.
We are talking about development under the leadership of women.
The scientists and researchers should make use of Artificial Intelligence to make the lives of the divyangs more simpler, technology and machines should be used for the betterment of the humankind.
Through Artificial Intelligence, we can be alert about natural calamities and help farmers to know about the crops return. It can improve the reach of the medical services and help in curing the diseases in a more advanced way.
The idea of perfect womanhood is perfect independence.(PM Modi quotes Swami Vivekanand).
Science and technology are value neutral. They do not have their own intelligence but it depends on us what work we want to take from that machine and here the human objective guides the outcome of the technology.
Three villages of Elephanta Island received electricity recently after 70 years of spending thier lives in darkness, it's the beginning of a new phase in terms of development.
'Trash mahotsav' was celebrated in Chhattisgrah and the objective was to spread awareness about the recycling and reusing of waste.
The PM said, "Science and technology are value neutral. They do not have their own intelligence but it depends on us what work we want to take from that machine. And here the human objective guides the outcome of the technology."
Modi also referred to his last month visit's to Ahmedabad along with his Israeli counterpart Benjamin Netanyahu and finished his address with Holi wishes to all.
TOP 10 QUOTES FROM PM MODI'S MANN KI BAAT
An online trading platform will be set up for 'GOBAR- Dhan' yojana which will help connect farmers to buyers of agricultural waste.
GOBAR- Dhan Yojana can be seen as a source of income for the farmers in rural areas since it will help converting waste into biogas.
It's our duty to ensure equal participation of women in every sphere of social and economic life.
We are talking about development under the leadership of women.
The scientists and researchers should make use of Artificial Intelligence to make the lives of the divyangs more simpler, technology and machines should be used for the betterment of the humankind.
Through Artificial Intelligence, we can be alert about natural calamities and help farmers to know about the crops return. It can improve the reach of the medical services and help in curing the diseases in a more advanced way.
The idea of perfect womanhood is perfect independence.(PM Modi quotes Swami Vivekanand).
Science and technology are value neutral. They do not have their own intelligence but it depends on us what work we want to take from that machine and here the human objective guides the outcome of the technology.
Three villages of Elephanta Island received electricity recently after 70 years of spending thier lives in darkness, it's the beginning of a new phase in terms of development.
'Trash mahotsav' was celebrated in Chhattisgrah and the objective was to spread awareness about the recycling and reusing of waste.
Business Affairs
PNB Fraud: ED writes to 16 other banks, seeks info on loans given to Nirav Modi, Mehul Choksi
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The Enforcement Directorate (ED) seems to have turned the tide towards the other banks in the Rs 11,400-crore Punjab National Bank (PNB) fraud, which has shaken up the entire banking system in the country, hence raising questions over the credibility about these public sector banks to keep the public money safe. As per the information, total 16 banks have been asked by the ED to give details of all the loans offered to Nirav Modi and Mehul Choksi - who are on the run since the fraud came to light two weeks ago - nature of the loans, and collateral offered against these loans. According to some estimates, total losses of these public sector banks could well swell up to over Rs 20,000 crore if the ED finds out 'bending of norms' in their cases too.
The ED's decision to seek information on the loans offered to the duo seems to be motivated from the allegation that some banks offered huge loans to the duo's companies at just 12 per cent collateral, which put them at the risk of not being able to recover in case of a 'PNB-like' fraud. To make things even worse, it has been alleged that many of these loans fall in special mention account of second category, meaning they were at the cusp of turning into non-performing assets when these loans were offered.
The Indian Express has quoted an official saying the agency "want(s) to see on what basis these loans were granted and whether these are still recoverable. However, we have not asked any bank to file a complaint with us." The report also indicates that more than two dozen banks, which offered loans to Nirav Modi and Choksi, could be exposed to loans between Rs 5,000 crore and Rs 10,000 crore. As many as 37 banks have lent money to Mehul Choksi's companies, which amount to around Rs 3,000 crore; Nirav Modi's firms also owe similar amount to total 17 banks.
The government had moved the Mumbai bench of the National Company Law Tribunal (NCLT) to confiscate all 114 properties owned by beleaguered diamantaire Nirav Modi and his maternal uncle and partner Mehul Choksi on Friday. The Ministry of Corporate Affairs (MCA) is said to have also moved the NCLT for the attachment of assets belonging to Modi's wife Ami Modi, and brother Neeshal.
With the ED attaching the properties of the duo diamantaires, it seems unlikely that they would be able to repay the loans taken by them from these banks. Nirav Modi, in a letter to PNB, has already said his companies owed the bank much less amount than alleged, and by going public it had jeopardised the chances of recovery. The PNB, however, has again asked him to come up with a concrete repayment plan.
The Central Bureau of Investigation (CBI), which is also probing the case, has already arrested Vipul Ambani, who was the Chief Financial Officer of Nirav Modi's Firestar Diamond. The information provided by him could be crucial in the case as he was allegedly in the direct contact of PNB officials in Mumbai as well as in the Delhi head office. The CBI has also arrested a General Manager-rank officer of the Punjab National Bank, Rajesh Jindal, who is posted at the bank's head office in New Delhi in connection with the case. Rajesh Jindal was the head of the Brady House, Mumbai, from 2009 till 20011.
Ever since the PNB scam has unfolded, the investigation agencies have begun its crackdown on the properties of Nirav Modi and his uncle Mehul Choksi, but have been clueless about their whereabouts. The fraud revelation that started from Rs 280 crore has reached over Rs 11,400 crore and could reach over Rs 20,000 crore as the agency officials warn of many more skeletons in the closet.
The ED's decision to seek information on the loans offered to the duo seems to be motivated from the allegation that some banks offered huge loans to the duo's companies at just 12 per cent collateral, which put them at the risk of not being able to recover in case of a 'PNB-like' fraud. To make things even worse, it has been alleged that many of these loans fall in special mention account of second category, meaning they were at the cusp of turning into non-performing assets when these loans were offered.
The Indian Express has quoted an official saying the agency "want(s) to see on what basis these loans were granted and whether these are still recoverable. However, we have not asked any bank to file a complaint with us." The report also indicates that more than two dozen banks, which offered loans to Nirav Modi and Choksi, could be exposed to loans between Rs 5,000 crore and Rs 10,000 crore. As many as 37 banks have lent money to Mehul Choksi's companies, which amount to around Rs 3,000 crore; Nirav Modi's firms also owe similar amount to total 17 banks.
The government had moved the Mumbai bench of the National Company Law Tribunal (NCLT) to confiscate all 114 properties owned by beleaguered diamantaire Nirav Modi and his maternal uncle and partner Mehul Choksi on Friday. The Ministry of Corporate Affairs (MCA) is said to have also moved the NCLT for the attachment of assets belonging to Modi's wife Ami Modi, and brother Neeshal.
With the ED attaching the properties of the duo diamantaires, it seems unlikely that they would be able to repay the loans taken by them from these banks. Nirav Modi, in a letter to PNB, has already said his companies owed the bank much less amount than alleged, and by going public it had jeopardised the chances of recovery. The PNB, however, has again asked him to come up with a concrete repayment plan.
The Central Bureau of Investigation (CBI), which is also probing the case, has already arrested Vipul Ambani, who was the Chief Financial Officer of Nirav Modi's Firestar Diamond. The information provided by him could be crucial in the case as he was allegedly in the direct contact of PNB officials in Mumbai as well as in the Delhi head office. The CBI has also arrested a General Manager-rank officer of the Punjab National Bank, Rajesh Jindal, who is posted at the bank's head office in New Delhi in connection with the case. Rajesh Jindal was the head of the Brady House, Mumbai, from 2009 till 20011.
Ever since the PNB scam has unfolded, the investigation agencies have begun its crackdown on the properties of Nirav Modi and his uncle Mehul Choksi, but have been clueless about their whereabouts. The fraud revelation that started from Rs 280 crore has reached over Rs 11,400 crore and could reach over Rs 20,000 crore as the agency officials warn of many more skeletons in the closet.
Industry cautions against lending freeze in wake of PNB fraud
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Lending to corporates should not be choked as a fallout of the Rs 11,400-crore fraud at Punjab National Bank specially at a time when credit growth is about to recover and the economy set to grow at a higher pace, India Inc has cautioned.
The Indian industry called for better control systems to check financial frauds and also suggested gradual reduction in government holding in public sector banks (PSBs).
The Confederation of Indian Industry (CII) said government should lower its stake in PSBs to 33 per cent gradually and adopt a twin strategy for tackling financial frauds, including better monitoring and supervision of banks and spread of best corporate governance standards.
"Government, regulators and industry must act fast to address systemic risks in the financial sector. The three key solutions for the banking sector are better management and operational efficiencies, use of technology such as blockchain and big data analytics, and lowering government shareholding in public sector banks," CII President Shobana Kamineni said in a statement.
Assocham cautioned against allowing the alleged fraud in the PNB to halt the entire system of corporate lending as demoralisation would set in among the top functionaries and employees of the state-owned banks.
It is something the country can ill-afford at a time when the credit growth was about to recover and economy was set to grow at a higher pace, Assocham said.
The CII president said financial malfeasance perpetrated by a collusion of unethical business entities and corrupt officials should not lead to a situation where funds to industry get choked.
"It is time for government to consider consolidation of PSBs and develop a few strong banks adhering to best standards in governance, accountability and transparency. Currently, shareholdings of government have been rising with bank recapitalisation attempts, and these should be brought down to 52 per cent at the earliest as intended by the government," she said.
A roadmap could be announced for bringing Government stake to 33 per cent in three to four years, CII said.
Assocham Secretary General D S Rawat said while long term solutions like privatisation of banks can be sought, the need of the hour is to rally around honest bank officers and honest business entities which have built trust on each other.
"Let one or a few black sheep not derail our financial system, which is resilient enough to withstand this kind of shocks, though ideally such jolts are better avoided and averted through systemic reforms," Rawat said.
Citing January export data that showed a deceleration in growth even as the global economy is on uptick, Assocham said the prick up in the domestic economy would require higher imports.
"Thus, both imports and exports are key to our economy and we have come a long way in scaling up the inter-face between the government agencies and the trade over the years. It is time to correct the systems which had allowed the misuse and move on with the task of achieving higher economic growth," Assocham said.
The industry said there is a need to strengthen internal systems of enterprises and adherence to regulatory norms in letter and spirit.
"While we need to ensure safe and sound functioning of the system and not allow loopholes like those in the PNB system of money or guarantee transfer, let banks not over-react and hit the trade and industry," Assocham said.
As India is moving towards 'ease of doing business', the actions of a few fraudulent actors need not translate into more stringent regulatory norms for the entire industry sector when corporate governance structures are strictly followed, emphasised CII.
PNB is in troubled waters ever since it announced last week about detection of fraudulent transactions of Rs 11,400 crore from its systems by the use of unauthorised Letter of Undertakings issued by few of its employees in connivance with rich diamond jewellery designer Nirav Modi, his uncle and owner of Gitanjali Gems Mehul Choksi and associate firms to access loan from foreign branches of other Indian banks.
The authorised loan through issuance of fake LOUs was happening since 2011, PNB has said besides registering an FIR.
A multi-probe investigation has already been launched into the matter including from the Enforcement Directorate and the CBI.
The Indian industry called for better control systems to check financial frauds and also suggested gradual reduction in government holding in public sector banks (PSBs).
The Confederation of Indian Industry (CII) said government should lower its stake in PSBs to 33 per cent gradually and adopt a twin strategy for tackling financial frauds, including better monitoring and supervision of banks and spread of best corporate governance standards.
"Government, regulators and industry must act fast to address systemic risks in the financial sector. The three key solutions for the banking sector are better management and operational efficiencies, use of technology such as blockchain and big data analytics, and lowering government shareholding in public sector banks," CII President Shobana Kamineni said in a statement.
Assocham cautioned against allowing the alleged fraud in the PNB to halt the entire system of corporate lending as demoralisation would set in among the top functionaries and employees of the state-owned banks.
It is something the country can ill-afford at a time when the credit growth was about to recover and economy was set to grow at a higher pace, Assocham said.
The CII president said financial malfeasance perpetrated by a collusion of unethical business entities and corrupt officials should not lead to a situation where funds to industry get choked.
"It is time for government to consider consolidation of PSBs and develop a few strong banks adhering to best standards in governance, accountability and transparency. Currently, shareholdings of government have been rising with bank recapitalisation attempts, and these should be brought down to 52 per cent at the earliest as intended by the government," she said.
A roadmap could be announced for bringing Government stake to 33 per cent in three to four years, CII said.
Assocham Secretary General D S Rawat said while long term solutions like privatisation of banks can be sought, the need of the hour is to rally around honest bank officers and honest business entities which have built trust on each other.
"Let one or a few black sheep not derail our financial system, which is resilient enough to withstand this kind of shocks, though ideally such jolts are better avoided and averted through systemic reforms," Rawat said.
Citing January export data that showed a deceleration in growth even as the global economy is on uptick, Assocham said the prick up in the domestic economy would require higher imports.
"Thus, both imports and exports are key to our economy and we have come a long way in scaling up the inter-face between the government agencies and the trade over the years. It is time to correct the systems which had allowed the misuse and move on with the task of achieving higher economic growth," Assocham said.
The industry said there is a need to strengthen internal systems of enterprises and adherence to regulatory norms in letter and spirit.
"While we need to ensure safe and sound functioning of the system and not allow loopholes like those in the PNB system of money or guarantee transfer, let banks not over-react and hit the trade and industry," Assocham said.
As India is moving towards 'ease of doing business', the actions of a few fraudulent actors need not translate into more stringent regulatory norms for the entire industry sector when corporate governance structures are strictly followed, emphasised CII.
PNB is in troubled waters ever since it announced last week about detection of fraudulent transactions of Rs 11,400 crore from its systems by the use of unauthorised Letter of Undertakings issued by few of its employees in connivance with rich diamond jewellery designer Nirav Modi, his uncle and owner of Gitanjali Gems Mehul Choksi and associate firms to access loan from foreign branches of other Indian banks.
The authorised loan through issuance of fake LOUs was happening since 2011, PNB has said besides registering an FIR.
A multi-probe investigation has already been launched into the matter including from the Enforcement Directorate and the CBI.
UDAN: Govt expects Rs 300 cr annually from levy on airlines
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The government expects to collect around Rs 300 crore annually from the levy on airlines flying on major routes towards the regional air connectivity scheme, a senior official said.
To partly raise money for viability gap funding requirement under the UDAN (Ude Desh ka Aam Naagrik) scheme, the civil aviation ministry has been collecting the levy since December 2016.
More routes are getting added under the UDAN scheme, which seeks to connect unserved and under-served airports as well as making flying more affordable.
With increasing number of UDAN routes, the ministry is also preparing to deal with higher funding needs in the coming months.
A senior ministry official said the response to UDAN flights has been very positive and many routes are having good occupancy.
Every year, the ministry expects to garner Rs 280 crore to 300 crore by way of levy collected from airlines flying on major routes.
An amount of Rs 5,000 is levied for each departure of flights on major routes. Initially, the levy was Rs 8,500 and was subsequently reduced.
To fund the ambitious regional connectivity scheme -- UDAN -- the civil aviation ministry is collecting a levy of Rs 5,000 per departure from airlines operating in major domestic routes, including Mumbai and Delhi.
With at least half of the seats in UDAN flights offered at subsidised fares, the participating carriers will be provided a certain amount of Viability Gap Funding (VGF) -- an amount shared between the Centre and the states concerned.
All the five operators -- Alliance Air, SpiceJet, TruJet, Air Deccan and Air Odisha -- that won routes in the first round of bidding under UDAN have already commenced operations.
IndiGo and Jet Airways are among the airlines that have won routes in the second round of bidding and are yet to start services under the scheme.
In his 2018-19 Budget speech, Finance Minster Arun Jaitley had said that 56 unserved airports and 31 under-served helipads will be connected under the regional air connectivity scheme.
The allocation for UDAN has been substantially raised to Rs 1,014.09 crore for the next financial year. The same was at Rs 200.11 crore for 2017-18 fiscal.
To partly raise money for viability gap funding requirement under the UDAN (Ude Desh ka Aam Naagrik) scheme, the civil aviation ministry has been collecting the levy since December 2016.
More routes are getting added under the UDAN scheme, which seeks to connect unserved and under-served airports as well as making flying more affordable.
With increasing number of UDAN routes, the ministry is also preparing to deal with higher funding needs in the coming months.
A senior ministry official said the response to UDAN flights has been very positive and many routes are having good occupancy.
Every year, the ministry expects to garner Rs 280 crore to 300 crore by way of levy collected from airlines flying on major routes.
An amount of Rs 5,000 is levied for each departure of flights on major routes. Initially, the levy was Rs 8,500 and was subsequently reduced.
To fund the ambitious regional connectivity scheme -- UDAN -- the civil aviation ministry is collecting a levy of Rs 5,000 per departure from airlines operating in major domestic routes, including Mumbai and Delhi.
With at least half of the seats in UDAN flights offered at subsidised fares, the participating carriers will be provided a certain amount of Viability Gap Funding (VGF) -- an amount shared between the Centre and the states concerned.
All the five operators -- Alliance Air, SpiceJet, TruJet, Air Deccan and Air Odisha -- that won routes in the first round of bidding under UDAN have already commenced operations.
IndiGo and Jet Airways are among the airlines that have won routes in the second round of bidding and are yet to start services under the scheme.
In his 2018-19 Budget speech, Finance Minster Arun Jaitley had said that 56 unserved airports and 31 under-served helipads will be connected under the regional air connectivity scheme.
The allocation for UDAN has been substantially raised to Rs 1,014.09 crore for the next financial year. The same was at Rs 200.11 crore for 2017-18 fiscal.
Sebi, exchanges probe equity, derivatives trade violation of PSBs
-
Markets regulator Sebi and stock exchanges are looking into possible manipulation in equity and derivatives trade of some public sector banks (PSBs) in the wake of circulation of a fake letter purportedly for misleading the investors.
The fake notice bearing the regulators logo and purportedly addressed to National Stock Exchange (NSE) was circulated on various WhatsApp groups and other social media platforms on February 21.
It apparently sought to mislead the market community in the wake of Rs 11,400-crore PNB scam by suggesting that Sebi was seeking details of futures and options data of all brokers and investors in various PSBs shares.
While the purported letter was soon found to be fake, the regulator and the exchanges are looking into trade details of various bank stocks to ascertain whether any manipulative activities took place, officials said.
Details would be also sought from telecom and internet operators, if required.
A day after the circulation of the letter, NSE clarified that Sebi did not issue any letter and the exchange did not receive any such directive. Further, the exchange requested trading members to advise their clients to remain cautious on such unsolicited letter being circulated by unregistered and unauthorised entities.
"It is clarified by Sebi that no such letter is issued and NSE has not received any such letter from Sebi," the exchange noted.
As per the fake letter, Sebi had asked NSE to furnish futures and options data of all institutions, mutual funds, brokers and clients, who are keeping their futures position open at the end of the settlement- on February 22 of PSU bank futures contracts. On February 14, PNB disclosed a Rs 11,400-crore (USD 1.77 billion) worth of fraud involving jewellers Nirav Modi and Mehul Choksi and their group firms.
The fake notice bearing the regulators logo and purportedly addressed to National Stock Exchange (NSE) was circulated on various WhatsApp groups and other social media platforms on February 21.
It apparently sought to mislead the market community in the wake of Rs 11,400-crore PNB scam by suggesting that Sebi was seeking details of futures and options data of all brokers and investors in various PSBs shares.
While the purported letter was soon found to be fake, the regulator and the exchanges are looking into trade details of various bank stocks to ascertain whether any manipulative activities took place, officials said.
Details would be also sought from telecom and internet operators, if required.
A day after the circulation of the letter, NSE clarified that Sebi did not issue any letter and the exchange did not receive any such directive. Further, the exchange requested trading members to advise their clients to remain cautious on such unsolicited letter being circulated by unregistered and unauthorised entities.
"It is clarified by Sebi that no such letter is issued and NSE has not received any such letter from Sebi," the exchange noted.
As per the fake letter, Sebi had asked NSE to furnish futures and options data of all institutions, mutual funds, brokers and clients, who are keeping their futures position open at the end of the settlement- on February 22 of PSU bank futures contracts. On February 14, PNB disclosed a Rs 11,400-crore (USD 1.77 billion) worth of fraud involving jewellers Nirav Modi and Mehul Choksi and their group firms.
OBC fraud: Delhi-based jeweller fled in 2014, CBI waited for six months to file an FIR: report
-
Even though the CBI got a complaint from the Oriental Bank of Commerce (OBC) for Rs 390 crore scam involving Delhi-based diamond exporter, it took the agency more than six months to file an FIR against the accused. In its defence, the CBI on Saturday told TOI that the directors of Dwarka Das Seth International had fled the country as early as 2014.
According to the report the agency did not lodge an FIR and put the matter on back burner after the accused and his accomplices were not found at their respective addresses.
Oriental Bank of Commerce is the latest public sector lender to join the list of state-run banks which have been defrauded by diamond merchants. Using the same modus operandi like the one used by celebrity jeweller Nirav Modi and his uncle Mehul Choksi to get Letter of Credit (LoC) from PNB, the accused involved in the OBC fraud availed credit facilities to the tune of Rs 389.85 crore with the help of some bank officials.
The CBI booked Delhi-based diamond jewellery exporter Dwarka Das Seth International Pvt Ltd, six months after the Oriental Bank of Commerce filed a complaint with the agency. CBI has also booked Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Singh - all directors of the firm - and another company named Dwarka Das Seth SEZ Incorporation for the alleged fraud. The whereabouts of Sabhya, the prime suspect, and other directors is not known for now.
The CBI charged the company and other directors of two firms with cheating OBC in connivance with bank officials and dubious financial instruments. This is similar to the modus operandi of absconding diamantaire Nirav Modi who defrauded Punjab National Bank (PNB) of Rs 11,400 crore.
The accused have allegedly availed several credit facilities from the Greater Kailash-II branch of OBC since 2007 by getting Foreign Letters of Credit (FLC), foreign documentary bill purchase and other instruments, said a Times of India report.
The bank found that the company was using Letters of Credit (LoCs) to pay off other creditors against the purchase of gold and other precious stone and transfer gold and funds outside the country using fictitious transactions, the FIR said.
The various credit facilities company had availed from OBC between 2007 and 2012 swelled to Rs 389 crore during the period. The jewellery export firm was also engaging in business transactions with non-existent entities, it said.
After the Rs PNB scam and Rotomac loan default, this is the third biggest corporate scam coming to light in a span of two weeks.
According to the report the agency did not lodge an FIR and put the matter on back burner after the accused and his accomplices were not found at their respective addresses.
Oriental Bank of Commerce is the latest public sector lender to join the list of state-run banks which have been defrauded by diamond merchants. Using the same modus operandi like the one used by celebrity jeweller Nirav Modi and his uncle Mehul Choksi to get Letter of Credit (LoC) from PNB, the accused involved in the OBC fraud availed credit facilities to the tune of Rs 389.85 crore with the help of some bank officials.
The CBI booked Delhi-based diamond jewellery exporter Dwarka Das Seth International Pvt Ltd, six months after the Oriental Bank of Commerce filed a complaint with the agency. CBI has also booked Sabhya Seth, Reeta Seth, Krishna Kumar Singh, Ravi Singh - all directors of the firm - and another company named Dwarka Das Seth SEZ Incorporation for the alleged fraud. The whereabouts of Sabhya, the prime suspect, and other directors is not known for now.
The CBI charged the company and other directors of two firms with cheating OBC in connivance with bank officials and dubious financial instruments. This is similar to the modus operandi of absconding diamantaire Nirav Modi who defrauded Punjab National Bank (PNB) of Rs 11,400 crore.
The accused have allegedly availed several credit facilities from the Greater Kailash-II branch of OBC since 2007 by getting Foreign Letters of Credit (FLC), foreign documentary bill purchase and other instruments, said a Times of India report.
The bank found that the company was using Letters of Credit (LoCs) to pay off other creditors against the purchase of gold and other precious stone and transfer gold and funds outside the country using fictitious transactions, the FIR said.
The various credit facilities company had availed from OBC between 2007 and 2012 swelled to Rs 389 crore during the period. The jewellery export firm was also engaging in business transactions with non-existent entities, it said.
After the Rs PNB scam and Rotomac loan default, this is the third biggest corporate scam coming to light in a span of two weeks.
General Awareness
BANKING AWARENESS PRACTICE MCQs FOR ALL BANK EXAMS
-
1. What is the minimum capital requirement for New Banks in the Private Sector?
a) Rs. 200 crore
b) Rs. 300 crore
c) Rs. 500 crore
d) Rs. 600 crore
e) None of these
2. Many times we read a term "ECB" in financial newspapers. What is the full form of ECB?
a) Essential Commercial Borrowing
b) Essential Credit and Borrowing
c) External Credit and Business
d) External Commercial Borrowing
e) None of the above
3. Which among the following banks has launched "Dhanchayat" an educational film to raise awareness on the dangers of borrowing money from unorganised sources?
a) Axis
b) ICICI
c) HDFC
d) SBI
e) YES
4. What is the maximum monthly pension for the subscribers under Atal Pension Yojana?
a) Rs 2000
b) Rs 3000
c) Rs 4000
d) Rs 5000
e) None of these
5. If a company which is not a non - banking financial company wants to collect public deposits, it is governed by ___ Act:
a) RBI Act 1934
b) Banking companies Act
c) Companies Act 1956
d) Central Government
e) None of the above
6. Which among the following has launched a Smart Humsafar Plan, a unique plan which offers multiple benefits of savings and insurance cover for husband and wife under a single policy?
a) ICICI Prudential
b) SBI Life
c) NIACL
d) LIC
e) HDFC ERGO
7. Which country launched world first Facial recognition ATM?
a) China
b) Japan
c) US
d) Canada
e) Brazil
8. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant
9. Which among the following bank has tied up with Chinese ecommerce giant Alibaba to provide easier trade finance to small and medium enterprises (SMEs) in the country?
a) HDFC Bank
b) SBI Bank
c) Canara Bank
d) ICICI Bank
e) Axis Bank
10. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above
11. What is the name of the platform launched by State Bank of India (SBI) that enables customers to book their foreign exchange transactions online?
a) SBI eforex
b) SBI emoney
c) SBI eonline
d) SBI eshare
e) SBI ebuddy
12. In CDR, "R" stands for ____.
a) Ratio
b) Receipt
c) Regulation
d) Restructuring
e) Reserve
13. Which of the following is not a function of General Insurance?
a) Cattle Insurance
b) Crop Insurance
c) Marine Insurance
d) Fire Insurance
e) None of the above
14. The Bank for International Settlements (BIS) is the world's oldest international financial organization established on 17 May 1930. The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation
in those areas and to act as a bank for central banks. The head office of BIS is located in ___.
a) Hong Kong
b) Switzerland
c)China
d) Mexico
e) Australia
15. National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country. To be operational by the year end, the headquarter of NIIF will be located in ____.
a) Mumbai
b) New Delhi
c) Bengaluru
d) Chennai
e) Kolkata
16. Special Drawing Rights (SDRs) are international foreign exchange reserve assets issued by
a) World Bank
b) WTO
c) ADB
d) IMF
e) None of these
17. Which of the following types of accounts are known as "Demat Accounts"?
a) Zero Balance Accounts
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there
c) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility
e) None of the above
18. According to the Socio Economic and Caste Census (SECC) which among the following states in India has highest per cent of Urban BPL households?
a) Bihar
b) Uttar Pradesh
c) Manipur
d) Jharkhand
e) Sikkim
19. Payment of a cheque may be countermanded by the ___
a) Payee
b) Drawer
c) True owner
d) Drawee
e) None of these
20. Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance indicators of two dozen public sector banks (PSBs). BBB will start functioning from ___.
a) 31st December 2015
b) 1st January 2016
c) 31st March 2016
d) 1st April 2016
e) 1st June 2016
21. Identify the well known person related to Banking field in India from the following?
a) Mrs. Meira Kumar
b) Mrs. Kiran Shaw
c) Mr. Arun Jaitley
d) Dr. D Subbarao
e) All of the above
22. A fixed deposit receipt is kept with the bank for its safety, is known as ___?
a) Safe custody
b) Safe deposit
c) Locker
d) Valid safe deposit
e) None of the above
23. Reserve Bank will issue ___bank notes with 3 additional features to aid the visually impaired in identification.
a) Rs. 500 and Rs 1,000
b) Rs. 100 and Rs. 500
c) Rs. 50 and Rs. 100
d) Rs. 10 and Rs. 100
e) None of these
24. Simply click a card launched by SBI special for ____.
a) Cash Transfer
b) Online Shopping
c) Pay Utility Bills
d) For Home Loans
e) None of these
25. Banking Companies are prohibited under Sec 8 of banking Regulation Act to sell and purchase securities. Yet Banks are selling securities (of the customer) which are under pledge as permitted by:
a) Indian Contract Act
b) SARFAESI Act
c) Government Notification
d) Banking Regulation Act
e) None of these
26. Hypothecation is:
a) Atransaction of conditional sale
b) A legal transaction whereby goods may be made available as security for a debt
c) Transfer of ownership by the borrower to the lender
d) Either a or b
e) None of the above
27. Mortgage is a:
a) Security on movable property for a loan
b) Security on immovable property for a loan
c) Concession on immovable property
d) Facility on immovable property
e) Security on loan sanctioned against fixed deposits
28. What is the minimum amount to be invested under Sukanya Samriddhi Scheme?
a) Rs. 500
b) Rs. 1000
c) Rs. 1500
d) No ceiling
e) Rs. 100
29. The Main activity of the Financial Intelligence Unit India (FIUIND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs
30. The SARFAESI Act 2002 empowers Banks / Financial Institutions to recover their non-performing assets (bad loans) without the intervention of the Court. In "SARFAESI" second "S" stands for ____.
a) Securitisation
b) Security
c) Statutory
d) Share
e) Saving
31. The main function of an Asset Management Company is to:
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above
32. Global Rating Agency Fitch has downgraded Viability Rating (VR) by one notch to 'bb' of which among the following banks?
a) Bank of Baroda
b) State Bank of India
c) Punjab National Bank
d) Canara Bank
e) IDBI Bank
33. The Banking Codes and Standards Board of India was registered on 18th February, 2006 under which of the following RBI Act?
a) Banking Regulation Act
b) The Societies Registration Act, 1860
c) Cooperative Societies Act
d) None of the above
e) All the above
34. As per the Banking Ombudsman Scheme, any person can file a complaint before the Banking Ombudsman, if the satisfied reply is not received from the bank within a period of ____.
a) one month
b) three months
c) two months
d) six months
e) None
35. CIBIL as a credit bureau caters to:
a) Consumer segments
b) Commercial segments
c) Both commercial and consumer segments
d) Nationalized Banks only
e) Private Banks only
36. Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.
a) borrowing, repo
b) borrowing, reverse repo
c) lending, repo
d) lending, reverse repo
e) None of the above
37. Some banks are financing big projects like construction of roads, bridges etc. Financing such projects means banks are helping exactly in:
a) Infrastructural Development
b) Project Management
c) Developing core sector Industry
d) Financial Inclusion
e) All of the above
38. A rate of exchange established between any two currencies on the basis of the respective quotation of each currency in terms of a third currency is known as:
a) Cross rate
b) Merchant rate
c) Wash rate
d) Composite rate
e) None of the above
ANSWERS:
1) c; 2) d; 3) c; 4) d; 5) c; 6) b; 7) a; 8) c; 9) d; 10) b;
11) a; 12) d; 13) e; 14) b; 15) a; 16) d; 17) c; 18) c; 19) b; 20) d;
21) d; 22) a; 23) a; 24) b; 25) d; 26) b; 27) b; 28) b; 29) b; 30) b;
31) b; 32) c; 33) b; 34) a; 35) c; 36) c; 37) a; 38) a.
a) Rs. 200 crore
b) Rs. 300 crore
c) Rs. 500 crore
d) Rs. 600 crore
e) None of these
2. Many times we read a term "ECB" in financial newspapers. What is the full form of ECB?
a) Essential Commercial Borrowing
b) Essential Credit and Borrowing
c) External Credit and Business
d) External Commercial Borrowing
e) None of the above
3. Which among the following banks has launched "Dhanchayat" an educational film to raise awareness on the dangers of borrowing money from unorganised sources?
a) Axis
b) ICICI
c) HDFC
d) SBI
e) YES
4. What is the maximum monthly pension for the subscribers under Atal Pension Yojana?
a) Rs 2000
b) Rs 3000
c) Rs 4000
d) Rs 5000
e) None of these
5. If a company which is not a non - banking financial company wants to collect public deposits, it is governed by ___ Act:
a) RBI Act 1934
b) Banking companies Act
c) Companies Act 1956
d) Central Government
e) None of the above
6. Which among the following has launched a Smart Humsafar Plan, a unique plan which offers multiple benefits of savings and insurance cover for husband and wife under a single policy?
a) ICICI Prudential
b) SBI Life
c) NIACL
d) LIC
e) HDFC ERGO
7. Which country launched world first Facial recognition ATM?
a) China
b) Japan
c) US
d) Canada
e) Brazil
8. Which type of machine is used by Business Correspondents?
a) Micro ATMs
b) POS
c) Biometric Card Reader
d) Solar empowered
e) Water resistant
9. Which among the following bank has tied up with Chinese ecommerce giant Alibaba to provide easier trade finance to small and medium enterprises (SMEs) in the country?
a) HDFC Bank
b) SBI Bank
c) Canara Bank
d) ICICI Bank
e) Axis Bank
10. In India, conventionally, bonds are issued by institutions in ____ sector while debentures by corporate in ____ sector.
a) private, public
b) public, private
c) either a or b
d) cooperative, NBFC
e) None of the above
11. What is the name of the platform launched by State Bank of India (SBI) that enables customers to book their foreign exchange transactions online?
a) SBI eforex
b) SBI emoney
c) SBI eonline
d) SBI eshare
e) SBI ebuddy
12. In CDR, "R" stands for ____.
a) Ratio
b) Receipt
c) Regulation
d) Restructuring
e) Reserve
13. Which of the following is not a function of General Insurance?
a) Cattle Insurance
b) Crop Insurance
c) Marine Insurance
d) Fire Insurance
e) None of the above
14. The Bank for International Settlements (BIS) is the world's oldest international financial organization established on 17 May 1930. The mission of the BIS is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation
in those areas and to act as a bank for central banks. The head office of BIS is located in ___.
a) Hong Kong
b) Switzerland
c)China
d) Mexico
e) Australia
15. National Investment and Infrastructure Fund (NIIF) is a fund created by the Government of India for enhancing infrastructure financing in the country. To be operational by the year end, the headquarter of NIIF will be located in ____.
a) Mumbai
b) New Delhi
c) Bengaluru
d) Chennai
e) Kolkata
16. Special Drawing Rights (SDRs) are international foreign exchange reserve assets issued by
a) World Bank
b) WTO
c) ADB
d) IMF
e) None of these
17. Which of the following types of accounts are known as "Demat Accounts"?
a) Zero Balance Accounts
b) Accounts which are opened to facilitate repayment of a loan taken from the bank. No other business can be conducted from there
c) Accounts in which shares of various companies are traded in electronic form
d) Accounts which are operated through internet banking facility
e) None of the above
18. According to the Socio Economic and Caste Census (SECC) which among the following states in India has highest per cent of Urban BPL households?
a) Bihar
b) Uttar Pradesh
c) Manipur
d) Jharkhand
e) Sikkim
19. Payment of a cheque may be countermanded by the ___
a) Payee
b) Drawer
c) True owner
d) Drawee
e) None of these
20. Union Government has decided to set up a Bank Board Bureau (BBB) to monitor key performance indicators of two dozen public sector banks (PSBs). BBB will start functioning from ___.
a) 31st December 2015
b) 1st January 2016
c) 31st March 2016
d) 1st April 2016
e) 1st June 2016
21. Identify the well known person related to Banking field in India from the following?
a) Mrs. Meira Kumar
b) Mrs. Kiran Shaw
c) Mr. Arun Jaitley
d) Dr. D Subbarao
e) All of the above
22. A fixed deposit receipt is kept with the bank for its safety, is known as ___?
a) Safe custody
b) Safe deposit
c) Locker
d) Valid safe deposit
e) None of the above
23. Reserve Bank will issue ___bank notes with 3 additional features to aid the visually impaired in identification.
a) Rs. 500 and Rs 1,000
b) Rs. 100 and Rs. 500
c) Rs. 50 and Rs. 100
d) Rs. 10 and Rs. 100
e) None of these
24. Simply click a card launched by SBI special for ____.
a) Cash Transfer
b) Online Shopping
c) Pay Utility Bills
d) For Home Loans
e) None of these
25. Banking Companies are prohibited under Sec 8 of banking Regulation Act to sell and purchase securities. Yet Banks are selling securities (of the customer) which are under pledge as permitted by:
a) Indian Contract Act
b) SARFAESI Act
c) Government Notification
d) Banking Regulation Act
e) None of these
26. Hypothecation is:
a) Atransaction of conditional sale
b) A legal transaction whereby goods may be made available as security for a debt
c) Transfer of ownership by the borrower to the lender
d) Either a or b
e) None of the above
27. Mortgage is a:
a) Security on movable property for a loan
b) Security on immovable property for a loan
c) Concession on immovable property
d) Facility on immovable property
e) Security on loan sanctioned against fixed deposits
28. What is the minimum amount to be invested under Sukanya Samriddhi Scheme?
a) Rs. 500
b) Rs. 1000
c) Rs. 1500
d) No ceiling
e) Rs. 100
29. The Main activity of the Financial Intelligence Unit India (FIUIND) is to control:
a) Tax Evasion
b) Money Laundering
c) Terrorism
d) Avoiding NPAs
e) Avoiding frauds in ATMs
30. The SARFAESI Act 2002 empowers Banks / Financial Institutions to recover their non-performing assets (bad loans) without the intervention of the Court. In "SARFAESI" second "S" stands for ____.
a) Securitisation
b) Security
c) Statutory
d) Share
e) Saving
31. The main function of an Asset Management Company is to:
a) hold the securities of various schemes
b) manage the funds by making investments in various types of securities
c) hold its property for the benefit of the unit holders
d) act on behalf of SEBI
e) All the above
32. Global Rating Agency Fitch has downgraded Viability Rating (VR) by one notch to 'bb' of which among the following banks?
a) Bank of Baroda
b) State Bank of India
c) Punjab National Bank
d) Canara Bank
e) IDBI Bank
33. The Banking Codes and Standards Board of India was registered on 18th February, 2006 under which of the following RBI Act?
a) Banking Regulation Act
b) The Societies Registration Act, 1860
c) Cooperative Societies Act
d) None of the above
e) All the above
34. As per the Banking Ombudsman Scheme, any person can file a complaint before the Banking Ombudsman, if the satisfied reply is not received from the bank within a period of ____.
a) one month
b) three months
c) two months
d) six months
e) None
35. CIBIL as a credit bureau caters to:
a) Consumer segments
b) Commercial segments
c) Both commercial and consumer segments
d) Nationalized Banks only
e) Private Banks only
36. Infusion of liquidity, by RBI, is done through _____ from / to banks under a _____ transaction.
a) borrowing, repo
b) borrowing, reverse repo
c) lending, repo
d) lending, reverse repo
e) None of the above
37. Some banks are financing big projects like construction of roads, bridges etc. Financing such projects means banks are helping exactly in:
a) Infrastructural Development
b) Project Management
c) Developing core sector Industry
d) Financial Inclusion
e) All of the above
38. A rate of exchange established between any two currencies on the basis of the respective quotation of each currency in terms of a third currency is known as:
a) Cross rate
b) Merchant rate
c) Wash rate
d) Composite rate
e) None of the above
ANSWERS:
1) c; 2) d; 3) c; 4) d; 5) c; 6) b; 7) a; 8) c; 9) d; 10) b;
11) a; 12) d; 13) e; 14) b; 15) a; 16) d; 17) c; 18) c; 19) b; 20) d;
21) d; 22) a; 23) a; 24) b; 25) d; 26) b; 27) b; 28) b; 29) b; 30) b;
31) b; 32) c; 33) b; 34) a; 35) c; 36) c; 37) a; 38) a.
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