The Tip of Indian Banking- Part3

8/17/2019 The Tip of Indian Banking- Part3

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IBPS - BANKING AWARENESS RAPID READING EXERCISE- PART: 001

1. Global Trust Bank as tak!n o"!r b# $r%!ntal Bank o& Co''!r(!

. In *la(! o& t+! !,%st%n B!n(+'ark *r%'! l!n/%n rat! s#st!'

&or (+ar%n %nt!r!st on loansa/"an(!s &ro' 2ul#3 )010 R!s!r"! Bank

o& In/%a +a/ %ntro/u(!/ - Bas! 4!n/%n Rat! s#st!'.

. 6on!# laun/!r%n r!&!rs to - (on"!rs%on o& 'on!# +%(+ %s

%ll!all# obta%n!/

7. T+! a((ount %n +%(+ tra/%n o& s+ar!s %n t+!%r !l!(tron%( &or'

%s 8 D!'at a((ount

. T+! R!s!r"! Bank o& In/%a %ssu!s 8 all t+! (urr!n(# not!s

!,(!*t t+! on! ru*!! not!

. R!s!r"! Bank o& In/%a /o!s not transa(t t+! bus%n!ss o& t+!

&ollo%n stat! o"!rn'!nt 8 2a''u an/ Kas+'%r

. T+! &%rst In/%an bank to o*!n a bran(+ outs%/! In/%a %n 4on/on %n

1ot! 'on!#

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. ?ull (on"!rt%b%l%t# o& a ru*!! '!ans 8 /!t!r'%nat%on o& rat! o&

!,(+an! b!t!!n ru*!! an/ &or!%n (urr!n(%!s &r!!l# b# t+!

'ark!t &or(!s o& /!'an/ an/ su**l#

. R!s!r"! Bank o& In/%a +as *r!s(r%b!/ t+at all s(+!/ul!/

(o''!r(%al banks s+oul/ 'a%nta%n t+!%r S4Rs %n 8 /at!/ s!(ur%t%!snot%&%!/ b# R!s!r"! Bank o& n/%a3 Tr!asur# b%lls o& Go"!rn'!nt o&

n/%a an/ Stat! D!"!lo*'!nt loans.

. T+! &ollo%n (at!or# o& banks !r! 'oot!/ %t+ a "%! to

*ro"%/%n an Inst%tut%onal '!(+an%s' &or *ro'ot%n rural an/ s!'%

urban sa"%ns as !ll as &or t+! *ro"%s%on o& (r!/%t &or "%abl! !(ono'%(

a(t%"%t%!s %n lo(al ar!as 8 4o(al ar!a banks %n t+! *r%"at! s!(tor.

. T+! &%rst Pr%"at! S!(tor Bank %n In/%a to r!(!%"! an %n *r%n(%*l!

a**ro"al &ro' t+! R!s!r"! Bank o& In/%a as 8 >ous%n D!"!lo*'!nt

?%nan(! Cor*orat%on 4%'%t!/.

. T+! Naras%'+an Co''%tt!! &or &%&nan(%al s!(tor r!&or's

su!st!/ r!/u(t%on %n S4R an/ CRR

. Co%ns ar! '%nt!/ at 6u'ba%3 >#/!raba/3 No%/a an/ Kolkatta.

. D!(%/%n t+! *ol%(# rat!s l%k! CRR3 R!*o rat!sS4R !t( ar!

not t+! &un(t%on o& a (o''!r(%al bank.

. Banks %ssu! (+!@u! book3 /!'an/ /ra&t3 l!tt!r o& (r!/%t an/

%t+/raal &or's 8 t+!# /o not %ssu!/ Pan Car/.

. In or/!r to /!al 'or! !&&!(t%"!l# %t+ t+! *robl!' o& Non

*!r&or'%n ass!ts %n bank%n s#st!' 8 Bank%n r!ulat%on a(t as&ra'!/ s*!(%all#

. T+! n! (a*%tal a/!@ua(# &ra'!ork *r!s(r%b!/ &or t+! banks %s

(o''onl# knon as 8 Bas!l a((or/

. P?RDA stan/s &or 8 *!ns%on &un/ r!ulator# an/ /!"!lo*'!nt

aut+or%t#

. T+! (+art!r o& t+! bank%n (o/!s an/ s!r"%(!s !r! *r!*ar!/

b# 8 n/%an Banks Asso(%at%on.

. T+! S!(ur%t%!s an/ E,(+an! Boar/ o& In/%a +as ask!/ all &or!%n

&un/s to (o'! &orar/ an/r!%st!r t+!'s!l"!s - as ?or!%nnst%tut%onal n"!stors *r%or to an# %n"!st'!nt %n n/%a

. In t+! (as! o& *!r&or'an(! bu/!t%n s#t!' as (o'*ar!/ to

tra/%t%onal bu/!t%n 8 %t str!ss!s 'or! on out(o'! an/ l!ss on

!,*!n/%tur! allo(at%on


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. T+! R!%onal Rural Banks ar! !'*o!r!/ to transa(t t+!

bus%n!ss o& bank%n as - /!&%n!/ un/!r Bank%n R!ulat%on a(t3

1D?C an/ Bank o& Baro/a.

. T+! stan/ar/ o& l%"%n %n a (ountr# %s r!*r!s!nt!/ b# %ts *!r

(a*%ta %n(o'!

. P+%s+%n %s 8 &rau/ul!nt a# o& a(@u%r%n P N an/ bank *ass

or/s us%n !'a%l

. Pru/!nt%al ICICI 'utual &un/ +as b!!n r!na'!/ as C C

Pru/!nt%al 6utual ?un/

. 6%(ro (r!/%t or '%(ro &%nan(! %s no"!l a**roa(+ %n bank%n %t+

t+! *oor. n t+! a**roa(+ bank (r!/%t %s !,t!n/!/ to t+! *oort+rou+ 8 s!l& +!l* rou*s

. R!s!r"! Bank o& In/%a 8 *r!*ar!s balan(! o& *a#'!nts

a((ounts %n n/%a

. An o"!r "alu!/ (urr!nt# %n t+! &or!%n !,(+an! 'ark!t +as t+!

&ollo%n %'*a(t 8 'ak! %'*orts (+!a*!r an/ !,*orts (ostl%!r

. W+!n a lar! nu'b!r o& %n"!stors %n a (ountr# trans&!r

%n"!st'!nts !ls!+!r! b!(aus! o&/%sturb!/ !(ono'%( (on/%t%ons3 %t

%s (all!/ 8 &l%+t o& (a*%tal

. T+! Go"!rn'!nt o& In/%a *ro'ula!/ Bank%n(o'*an%!s a(@u%s%t%on an/ trans&!r o&un/!rtak%ns or/%nan(! to

a(@u%r! &ourt!!n (o''!r(%al banks on 1


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. Bank rat!s s%nal t+! RB?s lon t!r' outlook on %nt!r!st

rat!s

. In /!*os%ts a((ount Kno #our Custo'!r u%/!l%n!s +as b!!n

%'*l!'!nt!/ %n )00) as *!r /%r!(t%"! o& R!s!r"! Bank o& n/%a

. ?RB6 '!ans 8 ?%s(al R!s*ons%b%l%t# an/ Bu/!t6ana!'!nt.

. T+! &ollo%n ass!ts ar! (all!/ as N!ar 'on!# 8 Bon/3 !@u%t#

s+ar!s3 t%'! /!*os%ts an/ tra"!ll!rs (+!@u!s.

. T+! !'*lo#!rs (ontr%but%on to (ontr%butor# *ro"%/!n/ &un/ o&

!'*lo#!!s %s (all!/ as t+! trans&!r o& *a#'!nt

. In/%an /!*os%tor# r!(!%*t %s 8 an %nstru'!nt %n t+! &or' o&

/!*os%tor# r!(!%*t (r!at/ b# an n/%an /!*os%tor# aa%nst

un/!rl#%n !@u%t# s+ar!s o& t+! %ssu%n (o'*an#

. NABARD %s t+! a*!, %nst%tut%on +%(+ +an/l!s r!&%nan(! &orar%(ultur! an/ rural /!"!lo*'!nt %n n/%a

. F4IP stan/s &or Fn%"!rsal 4oan an/ n"!st'!nt Plan

. 4an/ /!"!lo*'!nt banks &or' a *art o& t+! 8 (oo*!rat%"! (r!/%t

stru(tur!

. B+arat N%r'an oHana %s not a !l&ar! s(+!'! laun(+!/ b#

t+! Go"!rn'!nt o& n/%a

. Issu! o& &r!! (+!@u! books 8 (annot b! (all!/ as a "alu!

a//!/ s!r"%(! o&&!r!/ b# a bank

. GNP stan/s &or ross nat%onal *ro/u(t

. T+! 4an/ D!"!lo*'!nt Bank s!(ur!s s+ort t!r' a((o''o/at%on

&ro' - t+! stat! o"!rn'!nts3 (o''!r(%al banks an/ stat!

(oo*!rat%"! banks

RAPID READING EXERCISE 8 PART:: 01

01. In t+! (as! o& a b!ar!r (+!@u!3 t+! %/!nt%t# %s not n!(!ssar#

0). W+!n an or/!r (+!@u! %s !n/ors!/ %n blank3 %t b!(o'!s *a#abl! to

b!ar!r an/ trans&!rabl! b# '!r! /!l%"!r#

05. A (+!@u! (ross!/ Not N!ot%abl!3 %s st%ll trans&!rabl!

07. As *!r s!(t%on 15= o& N!ot%abl! Instru'!nts A(t3 t+!r! %s a *ro"%s%on

o& *!nalt# +!n t+! (+!@u! %ssu!/ %n /%s(+ar! o& a l%ab%l%t# %s

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/%s+onour!/ /u! to %nsu&&%(%!nt &un/s %n t+! a((ount an/ %& t+!

(+!@u! +as b!!n *r!s!nt!/ to t+! bank %t+%n a *!r%o/ o& s%,

'ont+s an/ %s not +onour!/ /u! to %nsu&&%(%!nt &un/s

09. A &%,!/ /!*os%t r!(!%*t (annot b! !n/ors!/

0. A (+!@u! %s *r!s!nt!/ %n an a((ount but t+!r! %s no su&&%(%!ntbalan(! to '!!t t+! sa'!. T+! (+!@u! %ll b! r!turn!/ %t+ t+!

r!'arks 8 %nsu&&%(%!nt &un/s

0;. T+! (+!@u! on b!+al& o& a *artn!rs+%* &%r' (an b! sto**!/ &or

*a#'!nt b# an# *artn!r +!t+!r aut+or%!/ to o*!rat! t+!

a((ount or not

0=. T+! 'ar%nal &ar'!r %s on! +o *oss!ss!s ar%(ultur! lan/ u*to

1.)9 a(r!s o& %rr%at!/ or ).9 a(r!s o& non-%rr%at!/ lan/

0


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)1. T+! s+ar!+ol/!rs o& a Pr%"at! 4%'%t!/ Co (annot trans&!r t+!

s+ar!s to ot+!r *ubl%(

)). T+! rul! %n Cla#tons (as! a**l%!s %n t+! (as! o& runn%n a((ounts

+a"%n /!b%t balan(!s

)5. T+! t!r' bank%n +as b!!n /!&%n!/ b# Bank%n R!ulat%on a(t 81


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70. T+! (+!@u! (ross!/ 8 a((ount *a#!! /ran %n &a"our o& 6r Br%H Nan/

%s *r!s!nt!/ b# Ra'ana Nan/ %n +%s a((ount an/ %n t+%s (as! t+!

bank s+oul/ not 'ak! t+! *a#'!nt

71. T+! &ollo%n ar! not n!ot%abl! %nstru'!nts 8 a%ra# b%ll3 a

(urr!n(# not!3 a l!tt!r o& (r!/%t an/ lorr# r!(!%*t

7). Fn/!r s!(t%on )9 o& N!ot%abl! Instru'!nts A(t3 *ubl%( +ol%/a#s ar!

/!(lar!/ b# 8 t+! stat! o"!rn'!nt b# not%&%(at%on %n t+! o&&%(%al

a!tt!

75. Con"!rs%on '!ans 8 not (r!/%t%n t+! a'ount %n t+! a((ount o&

tru! on!r

77. B# G!n!ral Cross%n ! '!an to trans"!rs! *arall!l l%n!s on a

(+!@u!

79. ?orar/ !,(+an! (ontra(t %s an ar!!'!nt +!r! t+! &or!%n

!,(+an! %s /!l%"!r!/ at *r!/!t!r'%n!/ &utur! /at! at a

(ontra(t!/ /at!

7. Fnl!ss ot+!r%s! s*!(%&%!/ %n t+! l!tt!r o& (r!/%t3 t+! %nsuran(!

a'ount s+oul/ b! !,*r!ss!/ %n t+! (urr!n(# o& t+! l!tt!r o&

(r!/%t

7;. $n t+! /!at+ o& t+! *artn!r3 bank o*!ns a n! a((ount to rul!-o&

t+! !,%st%n a((ount to a"o%/ a**l%(at%on o& Cla#tons (as!

7=. E,!(utor 8 %n bank%n '!ans a *!rson na'!/ b# t+! /!(!as!/ %n

+%s %ll an/ &or +%(+ *robat! %s obta%n!/

7


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$&&%(! an/ sub l%'%ts %ll b! allo(at!/ to bran(+!s at /%&&!r!nt

*la(!s

99. In (as! o& an# /oubt about sta'* /ut#3 (lar%&%(at%on (an b! sou+t

&ro' Stat! Sta'* Aut+or%t# an/ Controll!r o& sta'* /ut#

9. Banks !r! nat%onal%!/ un/!r 8 Bank%n Co'*an# A(@u%s%t%onan/ trans&!r o& un/!rtak%n a(t-1


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;9. ?or!%n !,(+an! transa(t%ons ar! "%!!/ ala#s &ro' t+! anl! o&

t+! bank

;. T+! r!s*ons%b%l%t# o& 'ana%n t+! &or!%n !,(+an! r!sour(!s l%!s

%t+ 8 R!s!r"! Bank o& n/%a

;;. E,%' *ol%(# %s announ(!/ b# t+! 6%n%str# o& Co''!r(!;=. In a ?r!! on Boar/ (ontra(t3 &r!%+t an/ %nsuran(! %ll b! born! b#

t+! %'*ort!r

;%n/u 6%nor%t# an/ uar/%ans+%* a(t3 1


10/56


11/56

In t+%s art%(l!3 so'! /!ta%ls about t+! balan(! s+!!ts an/ (on(!*t

about balan(! s+!!t an/ *ro&%t an/ loss a((ounts +a"! b!!n !,*la%n!/:

L W+at %s a balan(! s+!!t M

1. Balan(! s+!!t %s a stat!'!nt o& bus%n!ss *ass%on o& anoran%at%on as on a *art%(ular /at!.

). Bus%n!ss *os%t%on '!ans t+! ass!ts an/ l%ab%l%t%!s o& t+!

oran%at%on

5. Ass!ts '!ans +at t+! oran%at%on ons an/ l%ab%l%t%!s '!ans

+at t+! oran%at%on o!s to ot+!rs.

7. T+! balan(! s+!!t s%'*l# s+os t+! sna*s+ot o& %ts ass!ts an/

l%ab%l%t%!s on an# s*!(%&%!/ /at!

9. Nor'all# balan(! s+!!ts ar! *r!*ar!/ &or an a((ount%n #!ar an/

a((ount%n #!ar nor'all# '!ans on! #!ar unl!ss an/ ot+!r%s!s*!(%&%!/ ot+!r%s!

. In r!s*!(t o& bus%n!ss (on(!rns %n In/%a3 t+! a((ount%n #!ar

(o''!n(!s &ro' 1st A*r%l to 51st 6ar(+.

L W+at %s a *ro&%t an/ loss a((ount o& an oran%at%on M

1. Pro&%t an/ loss a((ount s+os t+! /!ta%ls o& %n(o'! !arn!/ an/

!,*!n/%tur! %n(urr!/ b# an oran%at%on o"!r a *!r%o/

). $"!r a *!r%o/ '!ans a s*!(%&%( *!r%o/ 8 sa# on! #!ar or s%, 'ont+s

or t+r!! 'ont+sL W+at ar! t+! /%&&!r!nt t#*!s o& %n(o'! &or an oran%sat%onM

1. T+!r! ar! to t#*!s o& %n(o'! 8 $*!rat%n %n(o'! an/ non

o*!rat%n %n(o'!

). $*!rat%n %n(o'! '!ans t+! %n(o'! !arn!/ b# t+! oran%at%on

t+rou+ bus%n!ss o*!rat%ons

5. Non o*!rat%n %n(o'! '!ans t+! %n(o'! !arn!/ b# t+!

oran%at%on ot+!r t+an bus%n!ss oran%at%ons.

7. In (as! t+! (o'*an# %s !na!/ %n 'anu&a(tur! o& l!at+!r all!ts3

t+! %n(o'! !arn!/ t+rou+ sal! o& l!at+!r all!ts3 %s (all!/ bus%n!ss%n(o'! &or t+! oran%at%on.

9. W+!n t+! (o'*an# +as %n"!st!/ %ts sur*lus &un/s %n s+ar!s3

/!*os%ts !t( an/ !arns so'! %n(o'! b# a# o& %nt!r!st an/ /%"%/!n/s

an/ su(+ %n(o'! %s (all!/ non o*!rat%n %n(o'! b!(aus! t+! %n(o'!

+as not+%n to /o %t+ t+! bus%n!ss %n(o'!. In ot+!ror/s3 /!s*%t!


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an# bus%n!ss (on/%t%ons3 t+! non o*!rat%"! %n(o'! %ll not un/!ro

an# (+an!.

L W+at ar! t+! /%&&!r!nt t#*!s o& !,*!n/%tur! &or an oran%at%on

M

1. T+!r! ar! to t#*!s o& !,*!n/%tur! &or an oran%at%on 8E,*!n/%tur! t+rou+ o*!rat%ons (all!/ o*!rat%n !,*!n/%tur! an/ non

o*!rat%"! !,*!n/%tur!

). $*!rat%"! !,*!n/%tur! '!ans !,*!n/%tur! %n(urr!/ /ur%n t+!

(ours! o& bus%n!ss o*!rat%ons

5. Non o*!rat%"! !,*!n/%tur! '!ans3 !,*!n/%tur! %n(urr!/ ot+!r t+an

bus%n!ss !,*!n/%tur!

7. ?or !,a'*l!3 t+! (o'*an# +a/ %n"!st!/ %n s+ar!s an/ t+!# +a/

%n(urr!/ loss!s on a((ount o& s+ar!s at t+! t%'! o& s!ll%n su(+ s+ar!s

%n t+! 'ark!t. In su(+ a (as!3 t+! loss %n(urr!/ %ll b! t!r'!/ as nono*!rat%"! !,*!n/%tur!

L W+at ar! t+! /%&&!r!nt t#*!s o& ass!ts o& an oran%at%on M

1. Ass!ts o& an oran%at%on (an b! (lass%&%!/ %nto to t#*!s 8 4on

t!r' ass!ts an/ s+ort t!r' ass!ts

). 4on t!r' ass!ts %n ot+!r or/s ar! (all!/ lon t!r' a**l%(at%on3

lon t!r' us!s !t(

5. S%'%larl# s+ort t!r' ass!ts ar! (all!/ (urr!nt ass!ts

7. T+!r! ar! to ot+!r t#*!s o& ass!ts (all!/ 8 %ntan%bl! ass!ts an/

non (urr!nt ass!ts +%(+ ar! *art o& lon t!r' ass!ts9. Tan%bl! ass!ts '!an ass!ts +%(+ +a"! *+#s%(al %/!nt% an/

%ntan%bl! ass!ts /o not +a"! an# *+#s%(al %/!nt%

L W+at /o #ou '!an b# %ntan%bl! ass!ts M

1. Intan%bl! ass!ts /o not +a"! an# *+#s%(al &or'

). T+!# s%'*l# r!*r!s!nt so'! "alu!

5. T+! &ollo%n ar! so'! k%n/s o& %ntan%bl! ass!ts 8 '%s(!llan!ous

!,*!n/%tur!3 *r!*a%/ !,*!ns!s3 oo/%ll3 *at!nts3 (o*#r%+ts !t(

L W+at /o #ou '!an b# non (urr!nt ass!ts M

1. Non (urr!nt ass!ts /o not +a"! an# *art%(%*at%on o"!r t+! bus%n!sso*!rat%ons o& t+! oran%at%on. T+!# ar! n!%t+!r lon t!r' %n natur!

nor s+ort t!r'

). Curr!nt ass!ts nor'all# '!an t+! ass!ts +%(+ ar! r!al%abl!

%t+%n a *!r%o/ o& t!l"! 'ont+s or %t+%n t+! a((ount%n *!r%o/3 %& %t

%s ot+!r%s! stat!/. Curr!nt ass!ts ar! also (all!/ as s+ort t!r'

ass!ts or s+ort t!r' us!s or s+ort t!r' a**l%(at%ons


13/56

5. As su(+ all ot+!r ass!ts ot+!r t+an (urr!nt ass!ts ar! (all!/ !%t+!r

lon t!r' ass!ts or non (urr!nt ass!ts

7. In"!st'!nts %n s+ar!s3 /!b!ntur!s an/ /!*os%ts 'atur%n a&t!r a

*!r%o/ o& t!l"! 'ont+s ar! (all!/ non (urr!nt ass!ts.

L W+at ar! t+! (o'*on!nts o& lon t!r' ass!ts M1. 4on t!r' ass!ts (o'*r%s! t+! &ollo%n: ?%,!/ ass!ts (o'*r%s%n

lan/3 bu%l/%ns an/ 'a(+%n!r#3 %ntan%bl! ass!ts !t(

). 4an/3 bu%l/%ns an/ 'a(+%n!r%!s *ut to!t+!r ar! (all!/ &%,!/

ass!ts or ross blo(k

5. N!t blo(k '!ans ross blo(k l!ss /!*r!(%at%on %n r!s*!(t o&

bu%l/%n3 lan/ an/ 'a(+%n!r%!s

L W+at ar! t+! (o'*on!nts o& (urr!nt ass!ts M

1. Curr!nt ass!ts (o'*r%s! t+! &ollo%n: Cas+3 Balan(! %t+

bank!rs3 sto(k o& oo/s3 sun/r# /!btors3 a/"an(! *a%/ to su**l%!rsan/ a/"an(! *a%/ to an# ot+!rs

L W+at t+! /%&&!r!nt t#*!s o& l%ab%l%t%!s %n a balan(! s+!!t M

1. T+! l%ab%l%t%!s ar! b%&ur(at!/ %nto to t#*!s 8 lon t!r' l%ab%l%t%!s

an/ s+ort t!r' l%ab%l%t%!s

). 4on t!r' l%ab%l%t%!s ar! %n ot+!r or/s (all!/ as lon t!r' sour(!s

L W+at ar! t+! (o'*on!nts o& lon t!r' l%ab%l%t%!s M

1. 4on t!r' ass!ts (o'*r%s! t+! &ollo%n: Ca*%tal3 R!s!r"!s3 T!r'

loans3 subor/%nat!/ /!bts !t(

). Ca*%tal (an b! b%&ur(at!/ %nto: - aut+or%!/ (a*%tal3 %ssu!/ (a*%tal3subs(r%b!/ (a*%tal an/ *a%/ u* (a*%tal

5. Pa%/ u* (a*%tal onl# b! tak!n %nto a((ount &or t+! *ur*os! o&

balan(! s+!!t an/ all ot+!r /!ta%ls %ll b! &or %n&or'at%on onl# as &ar

as balan(! s+!!t %s (on(!rn!/

7. R!s!r"!s (an b! (lass%&%!/ %nto 8 R!"!nu! r!s!r"!s an/ (a*%tal

r!s!r"!s.

9. R!"!nu! r!s!r"!s ar! a((u'ulat!/ !arn%ns t+rou+ *ro&%t !arn!/

t+rou+ bus%n!ss an/ non bus%n!ss o*!rat%ons

. Ca*%tal r!s!r"!s ar! (r!at!/ out o& %n(o'! !arn!/ t+rou+ %ssu! o& s+ar! (a*%tal 8 !. S+ar! *r!'%u' !t(. S+ar! *r!'%u' %s an !,tra

%n(o'! !arn!/ b# t+! oran%at%on Hust b# &loat%n t+!%r s+ar!s %n t+!

'ark!t an/ t+! %n(o'! %s not %n an#a# (onn!(t!/ %t+ t+! bus%n!ss

o*!rat%ons o& t+! oran%at%on

;. D%"%/!n/s (an b! /%str%but!/ &ro' out o& r!"!nu! r!s!r"!s an/ not

&ro' (a*%tal r!s!r"!s


14/56

=. T+!r! ar! /%&&!r!nt t#*!s o& (a*%tal (all!/ 8 !@u%t# (a*%tal an/

*r!&!r!n(! s+ar! (a*%tal


15/56

So'!t%'! ba(k Bank%n S!r"%(! R!(ru%t'!nt Boar/ 8 A s*!(%al s!t u*

as (onst%tut!/ &or s!l!(t%n bank%n *!rsonn!l %n t+! (a/r!s o&

(l!rks an/ *robat%onar# o&&%(!rs to '!!t t+! r!@u%r!'!nts %n

nat%onal%!/ banks %n In/%a.

Subs!@u!ntl# t+! s#st!' as /%s*!ns!/ %t+ an/ !a(+ bank as

(on/u(t%n t+! t!st on t+!%r on us%n /%&&!r!nt a!n(%!s

&or r!(ru%t%n (l!rks an/ *robat%onar# o&&%(!rs.

>!r!a&t!r t+! r!(ru%t'!nt %ll b! bas!/ u*on a (o''on r%tt!n

!,a'%nat%on &ollo!/ b# an %nt!r"%! an/ n%n!t!!n nat%onal%s!/ banks

+a/ unan%'ousl# a((!*t!/ t+%s arran!'!nt:

1 T+! (o''on r%tt!n !,a'%nat%on %ll b! (on/u(t!/ b# IBPS 8 an

a!n(# !,*!r%!n(!/ %n t+%s &%l!/

) Ea(+ (an/%/at! %ll b! %"!n a ra/! s+!!ts(or%n s+!!t a&t!r

su((!ss&ul (o'*l!t%on o& t+! !,a'%nat%on

5 T+! a**l%(ant +as to *ro/u(! t+! (o*# o& t+! ra/! s+!!t'ark

s+!!t alon %t+ ot+!r r!lat!/ /o(u'!nts to t+! r!s*!(t%"! banks

+%l! t+!# ar! a**l#%n &or t+! *ost o& (l!rks an/ *robat%onar# o&&%(!rs

7 >o!"!r3 %nt!r"%!s %ll b! (on/u(t!/ b# t+! r!s*!(t%"! banks

a&t!r s+ort l%st%n t+! (an/%/at!s bas%n u*on t+! ra/! s+!!ts(or%n

s+!!t an/ ot+!r !l%%bl! (r%t!r%a l%k! !/u(at%onal @ual%&%(at%ons3 a!

!t(

I r!*ro/u(! +!r! b!lo a sa'*l! (on"!rsat%on %n (onn!(t%on %t+ t+!

(o''on r%tt!n !,a'%nat%on:

L W+at %s t+! *ur*os! o& (o''on r%tt!n !,a'%nat%on M


16/56

>%t+!rto banks !r! (on/u(t%n t+! r%tt!n !,a'%nat%ons &or

r!(ru%t%n (l!rks an/ o&&%(!rs &or t+!%r oran%at%ons %n/%"%/uall#.

So'!t%'!s3 t+! !,a'%nat%ons !r! (on/u(t!/ b# 'or! t+an on! bank

sa# to banks on t+! sa'! /a#. An a**l%(ant +o +a/ a**l%!/ &or t+!

abo"! to banks as /!*r%"!/ o& t+! o**ortun%t# to a**!ar &or t+!!,a'%nat%on (on/u(t!/ an# on! o& t+! banks. B# (on/u(t%n a

(o''on r%tt!n !,a'%nat%on3 t+! abo"! /%&&%(ult# %ll b! alto!t+!r

!l%'%nat!/. 6or!o"!r3 !arl%!r t+! a**l%(ant +as to s%t &or *r!*arat%ons

aa%n an/ aa%n !a(+ t%'! +! a**!ars &or t+! !,a'%nat%ons s*!n/%n

'or! !n!r# an/ t%'!. No3 +! (an "!r# !ll (on(!ntrat! on t+!

subH!(ts an/ (an &ar! !ll %n on! s%nl! s%tt%n

L W+at %s t+! s(or%n s+!!tra/! s+!!t M

Bas%n u*on t+! *!r&or'an(! %n t+! r%tt!n !,a'%nat%on3 t+! a**l%(ant

%ll b! %ssu!/ a s(or%n s+!!t. B!tt!r t+! s(or%n3 b!tt!r t+! (+an(!s

&or !tt%n t+! *ost. W%t+ a s%nl! s(or%n s+!!t3 +! (an a**l# to an#

nu'b!r o& banks out o& t+! n%n!t!!n nat%onal%!/ banks as at *r!s!nt.

>! n!!/ not r%t! t+! !,a'%nat%on on(! aa%n. $n(! +! +as ot

r!asonabl# a oo/ s(or! /ur%n t+! r%tt!n !,a'%nat%on3 +! (an "!r#


17/56

!ll (on(!ntrat! %n s+o%n a b!tt!r *!r&or'an(! /ur%n t+!

%nt!r"%!s to b! (on/u(t!/ b# t+! /%&&!r!nt banks

L W+!t+!r t+! s(or%n s+!!t %s a &%nal on! M

No. In (as! t+! a**l%(ant %s not sat%s&%!/ %t+ t+! ra/!ss(or! +! +a/

obta%n!/3 +! +as t+! o*t%on to a**!ar &or anot+!r (o''on r%tt!n!,a'%nat%on an/ (an "!r# !ll %'*ro"! +%s ra/!s.

L W+!t+!r t+! (o''on r%tt!n !,a'%nat%on %ll (onta%n

@u!st%ons on bank%n M

!s. E"!n t+ou+ t+! nu'b!r o& @u!st%ons on bank%n +a"! not #!t

b!!n s*!(%&%!/ or knon to an#bo/# 3 %t %s !,*!(t!/ t+at at l!ast 50 to

70 @u!st%ons 'a# b! !,(lus%"!l# &ro' bank%n subH!(ts. In t+! (as! o&

!,a'%nat%ons &or (l!rks3 *robabl# t+! @u!st%ons %ll b! *ur!l# on bas%(

bank%n an/ &or o&&%(!rs %ll b! sl%+tl# tou+!r. >o!"!r3 t+!

@u!st%ons %ll b! *r!*ar!/ b# t+! !,a'%n!rs tak%n %nto (ons%/!rat%ont+! knol!/! l!"!l o& an# %n/%"%/ual +o +as no bank%n ba(kroun/.

L

L Can #ou t!ll '! as to t+! (+a*t!rs &ro' +%(+ t+! @u!st%ons

%ll b! s!l!(t!/ M

I !,*!(t t+at t+! @u!st%ons %ll b! &ro' t+! &ollo%n to*%(s: W+at %s

bank%n M 8 E"olut%on o& banks 8 /%&&!r!nt k%n/s o& banks 8 W+at %s a

(!ntral bank M8 W+at /o #ou '!an b# bank nat%onal%at%on M 8 T+!

*r!s!nt *os%t%on o& nat%onal%!/ banks 8 T+! bank%n r!ulat%on a(t 8

T+! RBI a(t 8 s(+!/ul!/ banks 8 nons(+!/ul!/ banks 8 *ubl%( s!(torbanks 8 *r%"at! s!(tor banks 8 r!%onal rural banks 8 un%"!rsal bank%n

8 narro bank%n 8 %n/%!nous bank!rs 8 oran%!/ s!(tors 8

unoran%!/ s!(tors 8 n!ot%abl! %nstru'!nts 8 /!*os%ts 8 k%n/s o&

/!*os%ts - loans 8 sa"%ns bank 8 (urr!nt a((ount 8 o"!r/ra&t a((ount 8

r!(urr%n /!*os%t 8 &%,!/ /!*os%t 8 r!%n"!st'!nt /!*os%t 8 nostro bank 8

"ostro bank 8 t#*!s o& (usto'!rs 8 /%&&!r!nt t#*!s o& (onst%tut%ons 8

a((ount o*!n%n *ro(!/ur! 8 +at %s a (+!@u! 8 /ra!r 8 /ra!! 8

*a#!! 8 !n/ors!! 8 /ra&t 8 b%ll o& !,(+an! 8 kno #our (usto'!r

u%/!l%n!s 8 a((ount o*!n%n r!@u%r!'!nts 8 AT6 (ar/s 8 D!b%t (ar/s 8 Cr!/%t Car/s 8 K%n/s o& loans 8 s!(ur!/ loans 8 uns!(ur!/ loans 8

+ous%n loans 8 'orta! loans 8 P%n nu'b!r 8 RTGS 8 NE?T 8 6on!#

trans&!r s!r"%(!s 8 Bas!l II 8 No &r%lls a((ount 8 S!n%or (%t%!ns a((ount

8 DICGC 8 ECGC 8 NABARD3 KJIC3 P6IEGP 8 Pa(k%n (r!/%t 8 sa&!

/!*os%t lo(k!rs - R%+t to %n&or'at%on a(t - Bank%n o'bu/s'an -

CRISI4 - CBS !t(. T+! l%st %s onl# %llustrat%"! an/ not !,+aust%"!.


18/56

T+! a**l%(ant %s !,*!(t!/ to kno t+! *ro(!/ur! %n o*!n%n o&

/%&&!r!nt t#*!s o& bank a((ounts3 /!*os%ts3 loans !s*!(%all#

!/u(at%onal loans3 +ous%n loans at t+! !ntr# l!"!l "!r# t+orou+l#

W+%l! t+! a**l%(ants +o +a/ stu/%!/ (o''!r(! subH!(ts 'a# &%n/ %t

!as%!r to ans!r t+! @u!st%ons r!asonabl# !ll3 t+! ot+!r a**l%(ants

s+oul/ n!(!ssar%l# *ut %n t+!%r b!st !&&orts %n r!a/%n t+! bank%n

'at!r%als

L W+at %ll b! t+! *att!rn o& BPS @u!st%ons M

All @u!st%ons %ll b! o& obH!(t%"! t#*!. Ea(+ @u!st%on %ll b! +a"%n&%"! (+o%(!s 8 a3b3(3/3! an/ out o& +%(+ on! (+o%(! %ll *!rta%n to t+!

(orr!(t ans!r.

L W+at about t+! natur! o& @u!st%ons M

T+!r! ar! /%&&!r!nt t#*!s o& @u!st%ons 8 D%r!(t ans!r @u!st%on

ot+!r%s! (all!/ t+! *os%t%"! @u!st%ons n!at%"! @u!st%ons

!l%'%nat%n @u!st%on (o'*r!+!ns%"! t#*! o& @u!st%ons3 '%sl!a/%n

@u!st%ons !t(.

L W+at %s a *os%t%"! @u!st%on M

T+! @u!st%on %ll b! a /%r!(t on! %t+out an# t%st%n. ?or !,a'*l!:W+o %s (all!/ t+! '%nor M 8 W+%(+ %s t+! C!ntral Bank o& our Countr# M

8 >o 'an# nat%onal%!/ banks ar! t+!r! %n our (ountr# as at *r!s!nt M

L W+at %s a n!at%"! @u!st%on M

T+%s @u!st%on /!'an/s a n!at%"! r!*l# 8 &or !,a'*l! 8 $ut o& t+!

&ollo%n +%(+ %s not a nat%onal%!/ bank M 8 $ut o& t+! &ollo%n +o

%s not a '%nor M 8 $ut o& t+! &ollo%n +o %s not a /ra!r M


19/56

It %s a 'ust t+at t+! (an/%/at! s+oul/ r!a/ t+! @u!st%ons t+orou+l#

an/ s+oul/ (lar% +%'s!l& as to +!t+!r t+! @u!st%on %s o& a *os%t%"!

t#*! or n!at%"! t#*! !t(. Fnl!ss an/ ot+!r%s! +! %s sur! about t+!

natur! o& t+! @u!st%ons3 t+!r! %s !"!r# *oss%b%l%t# t+at +! 'a# b! %"%n

t+! ron ans!r L W+at %s an !l%'%nat%n @u!st%on M

It '!ans - !l%'%nat%n t+! un%/!nt%(al *art# &ro' t+! rou* 8 &or

!,a'*l! 8 ?%n/ t+! o// 'an out o& t+! &ollo%n.$ut o& t+! &%"!

(+o%(!s3 on! (+o%(! %ll b! /%&&!r!nt &ro' t+! ot+!rs on a((ount o& a

s*!(%&%( r!ason T+%s %s al'ost l%k! a n!at%"! @u!st%on an/ +!r!as

t+! n!at%"! @u!st%on /!'onstrat!s %n t+! @u!st%on %ts!l& %ts n!at%"!

r!@u%r!'!nt3 t+! !l%'%nat%n @u!st%on %ll not b! +a"%n an# s*!(%&%(

n!at%"! r!@u%r!'!nt an/ %t onl# +%+l%+ts t+! /%&&!r!nt%al%t# o& t+!

*!rsonobH!(t%n&or'at%on %n t+! rou*.?or !,a'*l! r!a/ t+! &ollo%n@u!st%on: ?%n/ t+! o// 'an out o& t+! &ollo%n: a Stat! Bank o& In/%a

b C!ntral Bank o& In/%a ( Canara Bank / Cor*orat%on Bank ! Fn%t!/

Co''!r(%al Bank - In t+%s @u!st%on Stat! Bank o& In/%a %s t+! o// 'an.

E"!n t+ou+ all &%"! banks ar! *ubl%( s!(tor banks3 Stat! Bank o& In/%a

%s not a nat%onal%s!/ bank. Aa%n r!a/ t+! &ollo%n @u!st%on: ?%n/ t+!

o// 'an out o& t+! &ollo%n: a Canara Bank b Cor*orat%on Bank (

?!/!ral Bank / Fn%t!/ Co''!r(%al Bank ! In/%an Bank - $ut o& t+!

&%"! banks '!nt%on!/ abo"!3 ?!/!ral Bank %s a *r%"at! s!(tor bank an/

t+! r!'a%n%n &our banks ar! nat%onal%s!/ banks. As su(+ ?!/!ral Bank%s t+! o// 'an %n t+! rou*

L W+at %s a (o'*r!+!ns%"! t#*! o& @u!st%on M

$n! *ool o& %n&or'at%on %ll b! *ro"%/!/ an/ s!"!ral @u!st%ons %ll b!

&ro' t+! %n&or'at%on *ool. T+! a**l%(ant s+oul/ t+orou+l# r!a/ t+!

%n&or'at%on 'or! t+an on(! b!&or! att!'*t%n an# @u!st%ons. S%n(!

t+! sa'! *ool o& %n&or'at%on %s a"a%labl! &or 'or! t+an on! @u!st%ons3

t+! a**l%(ant %ll b! o&t!n '%sl!/ an/ +! +as to b! (ar!&ul %n &%n/%n

out t+! (orr!(t ans!r

L W+at %s a '%sl!a/%n @u!st%on MT+! @u!st%on %ll '%sl!a/ t+! (an/%/at!. E"!n t+ou+ (orr!(t ans!rs

ar! *ro"%/!/ %n on! or 'or! (+o%(!s3 t+!r! %ll b! on! (+o%(! +%(+

%ll b! '%sl!a/%n b# t+! t!r':8 Non! o& t+! abo"!. So'!t%'!s t+!

(+o%(! 8 Non! o& t+! abo"! %ll b! a (orr!(t ans!r an/ 'an# t%'!s

%t %ll b! a '%sl!a/%n ans!r. T+%s %s &or t+! *ur*os! o& *ro'*t%n


20/56

t+! a**l%(ant to b! "!r# s*!(%&%( about t+! (orr!(t ans!r (+os!n b#

+%' %t+out ra%s%n an# &urt+!r /oubts

L W+# @u!st%ons ar! o& /%&&!r!nt t#*!s l%k! 8 *os%t%"! t#*!3

n!at%"! t#*!3 '%sl!a/%n t#*! !t( M

T+! 'a%n *ur*os! %s to &%n/ out t+! stab%l%t# o& t+! a**l%(ant %n(+oos%n t+! (orr!(t ans!r. In ot+!r or/s3 t+! a**l%(ant s+oul/ +a"!

t+! (orr!(t %n&or'at%on %t+ +%'

Fnl%k! /!s(r%*t%"! t#*! o& @u!st%ons3 t+! a**l%(ant +as to *oss!ss t+!

%n&or'at%on to t+! *o%nt +%l! ans!r%n t+! obH!(t%"! t#*! o&

@u!st%ons. Nor'all# t+%s %ll b! !,*la%n!/ b# t+! t!r' 8 Poss!ss%n

t+! %n&or'at%on %n +%s &%n!r t%*s

Con(lus%on:

S(or%n 'or! 'arks or ra/!s %n t+! (o''on r%tt!n !,a'%nat%on

/!*!n/s onl# u*on t+! +ar/ork *ut &ort+ b# t+! a**l%(ant /ur%n t+!

(ours! o& +%s *r!*arat%ons. ?or t+%s *ur*os! +! +as to o t+rou+

/%&&!r!nt k%n/s o& bookl!ts an/ r!a/%n 'at!r%als. 50 to 70 /a#s o& +ar/

ork %ll /!&%n%t!l# !nabl! t+! a**l%(ant %n s(or%n "!r# +%+ 'arks %n

t+! !,a'%nat%on

An/ &%nall# 8 su((!ss %s t+! *ro/u(t o& +ar/ork an/ t+!r! %s no

s+ort(ut &or su((!ss.

All t+! b!st to !a(+ on! o& t+! r!a/!rs

C$66$N WRITTEN EXA6INATI$N ?$R RECTFIT6ENT T$PR$BATI$NAR $??ICERS AND C4ERKS A 6$DE4 FESTI$N $N

BANKING SFB2ECTS

http://gaurisankar.blogspot.com/2011/07/common-written-examination-for.htmlhttp://gaurisankar.blogspot.com/2011/07/common-written-examination-for.htmlhttp://gaurisankar.blogspot.com/2011/07/common-written-examination-for.htmlhttp://gaurisankar.blogspot.com/2011/07/common-written-examination-for.htmlhttp://gaurisankar.blogspot.com/2011/07/common-written-examination-for.htmlhttp://gaurisankar.blogspot.com/2011/07/common-written-examination-for.html


21/56

IBPS %s (on/u(t%n (o''on r%tt!n !,a'%nat%on &or (an/%/at!s

as*%r%n to Ho%n 1< nat%onal%s!/ banks as *robat%onar# o&&%(!rs an/

(l!rks %t+ !&&!(t &ro' S!*t!'b!r3 )011. T+! &%rst t!st %ll b!

(on/u(t!/ /ur%n t+! s!(on/ !!k o& S!*t!'b!r3 )011 an/ t+!

/!ta%l!/ u%/!l%n!s ar! a"a%labl! %n t+!%r !bs%t!.W! ar! r!*ro/u(%n +!r!b!lo t+! *robabl! 'o/!l @u!st%ons on

bank%n subH!(ts:

1. W+at /o #ou kno b# t+! t!r' 8 A46 M

A Ass!t 4%ab%l%t# 6ana!'!nt

B Assur!/ 4%ab%l%t# 6ana!'!nt

C Assur!/ 4%b!rat%on 6o"!'!nt

D Assa' 4%b!rat%on 6o"!'!nt

E Assur!/ 4o(al 6an*o!r ). W+%(+ a'onst t+! &ollo%n banks ar! +a"%n 'or! nu'b!r o&

bran(+!s %n our (ountr# M

A ICICI Bank

B C!ntral Bank o& In/%a

C Canara Bank

D Stat! Bank o& In/%a

E PunHab Nat%onal Bank

5. W+%(+ a'onst t+! &ollo%n (an +a"! AT6 (ar/s &ro' a bank M

A Curr!nt a((ount +ol/!rsB Sa"%ns Bank a((ount +ol/!rs

C R!(urr%n /!*os%t a((ount +ol/!rs

D ?%,!/ /!*os%t a((ount +ol/!rs

E A an/ B o& t+! abo"!

7. >o r!'%ttan(!s ar! 'a/! %nto bank a((ounts M:

A S%'*l# b# *a#%n t+! 'on!# to t+! 'ana!r

B B# &%ll%n u* t+! (+allan *r!s(r%b!/ b# t+! bank an/ t!n/!r%n 'on!#

to t+! (as+%!r alon %t+ t+! (+allan

C B# r%t%n %n a sl%* o& *a*!r an/ t!n/!r%n 'on!# to t+! (as+%!r D B# +an/%n o"!r t+! 'on!# to t+! (as+%!r an/ &urn%s+%n t+! /!ta%ls

o& a((ount nu'b!r3 na'!3 a'ount !t(

E An#on! o& t+! abo"!

9. Na'! t+! &%rst bank +%(+ *ro"%/!/ %nt!rn!t bank%n s!r"%(!s %n our

(ountr# M

A Canara Bank


22/56

B PunHab Nat%onal Bank

C Stat! Bank o& In/%a

D ICICI Bank

E C!ntral Bank o& In/%a

. W+at /o #ou '!an b# SWI?T MA So(%!t# &or Worl/%/! Int!rbank ?%nan(%al T!l!(o''un%(at%on

B So(%!t# &or Worl/%/! Int!rnat%onal ?%nan(%al T!l!(o''un%(at%on

C So(%!t# &or Worl/%/! Int!rnat%onal ?oo/ Tr!at#

D So(%!t# &or W%l/l%&! Int!rnat%onal ?un/ Tr!at#

E Non! o& t+! abo"!

;. T+! +!a/@uart!r o& SWI?T %s s%tuat!/ at -

A Was+%nton

B N! ork

C 4os An!lsD C+%(ao

E 4on/on

=. R!al T%'! Gross S!ttl!'!nt as laun(+!/ %n our (ountr# on

).05.)007 %n +%(+ (%t# M

A N! D!l+%

B 6u'ba%

C >#/!raba/

D C+!nna%

E Banalor!#/!raba/

D 6u'ba%

E D!l+%

10. W+%(+ (%t# %s (all!/ t+! &%nan(%al (a*%tal o& our (ountr# M

A N! D!l+%B C+!nna%

C 6u'ba%

D N! D!l+%

E Kolkatta

11. W+at /o #ou '!an b# C+!@u! Trun(at%on M

A S(ann!/ (o*# o& a (+!@u!


23/56

B S!n/%n t+! (+!@u! b# (our%!r

C El!(tron%( %'a! o& a (+!@u!

D S!n/%%n t+! (+!@u! b# s*!!/*ost

E Non! o& t+! abo"!

1). T+! &%rst bank to %ntro/u(! %ntra-bank %nt!r-(%t# (+!@u! trun(at%ons#st!' %n In/%a as

A Canara Bank

B PunHab Nat%onal Bank

C Stat! Bank o& In/%a

D ICICI Bank

E C!ntral Bank o& In/%a

15. T+! &%rst bank %n our (ountr# to %ntro/u(! 'ob%l! bank%n M

A S#n/%(at! Bank

B PunHab Nat%onal BankC Stat! Bank o& In/%a

D ICICI Bank

E >D?C Bank

17. W+at /o #ou '!an b# Fn%"!rsal Bank%nM

A $*!n%n bran(+!s all o"!r t+! un%"!rs!

B 6ob%l! a((ounts all o"!r t+! un%"!rs!

C Pro"%s%on o& all &%nan(%al s!r"%(!s %n on! bank

D All o& t+! abo"!

E Non! o& t+! abo"!19. Go"!rn'!nt +as r!(!ntl# %ntro/u(!/ a sur"!%llan(! s#st!' to +a"! a

*!n!trat%n a! on t+! /!!/s o& /%r!(tors. T+! a(ron#' 8 DIN '!an

%n t+%s r!ar/:

A D%r!(tor I/!nt%&%(at%on Nu'b!r

B D%r!(t I/!nt%&%(at%on Nu'b!r

C D%r!(tor In&or'at%on Nu'b!r

D D%r!(tor In/%"%/ual Nu'b!r

E D%r!(tor Instru(t%on Nu'b!r

ANSWERS:

1-A )-D 5-E 7-B 9-D -A ;-C =-B


24/56

BANKING RATI$NA4ES 8 PART: 010

In t+%s art%(l! t+!r! ar! /%s(uss%ons about (!rta%n bank%n rat%onal!s

as a**l%(abl! %n In/%a:

Fn/!r s!(t%on )9 o& t+! Partn!rs+%* a(t3 1! %s not

*!rsonall# l%abl! nor %s +%s s!*arat! *ro*!rt# &or t+! /!bts o& t+! &%r'

but +%s s+ar! %n t+! *artn!rs+%* *ro*!rt# an/ *ro&%ts %ll b! so l%abl!.

W+# C!rt%&%(at! to (o''!n(! bus%n!ss %s not (all!/ &or &ro'

Pr%"at! 4%'%t!/ (o'*an%!s &or o*!n%n a bank a((ount M

A *r%"at! 4%'%t!/ (o'*an# !ts l!al status on obta%n%n t+!

(!rt%&%(at! o& %n(or*orat%on. As %t %s not aut+or%!/ to %ssu! (a*%tal to

*ubl%(3 %t (an (o''!n(! bus%n!ss %''!/%at!l# a&t!r %n(or*orat%on.

>o!"!r3 a *ubl%( l%'%t!/ (o'*an# 'a# (o''!n(! bus%n!ss onl# a&t!r

http://gaurisankar.blogspot.com/2011/07/banking-rationales-part-010.htmlhttp://gaurisankar.blogspot.com/2011/07/banking-rationales-part-010.html


25/56

%t obta%ns &ro' t+! R!%strar o& Co'*an%!s a (!rt%&%(at! &or

(o''!n(!'!nt o& bus%n!ss3 +%(+ %s rant!/ subH!(t to t+! &ollo%n

(on/%t%ons

S+ar!s *a#abl! %n (as+ 'ust +a"! b!!n allott!/ u*to t+! a'ount o&

'%n%'u' subs(r%*t%onD%r!(tors 'ust +a"! *a%/ %n (as+ t+! a**l%(at%on an/ allot'!nt 'on!#

on t+! s+ar!s tak!n b# t+!'

No 'on!# s+oul/ +a"! b!(o'! r!&un/abl! &or &a%lur! to a**l# or obta%n

*!r'%ss%on &or s+ar!s or /!b!ntur!s to b! /!alt %n an# r!(on%!/

sto(k !,(+an!

W+# a '%nor (annot b! t+! /ra!! o& a b%ll o& !,(+an! t+ou+ +!

'a# b! a *a#!! t+!r!o& M

S!(t%on ) o& t+! N!ot%abl! Instru'!nts A(t3 1==1 !,(lu/!s *!rsonal

l%ab%l%t# o& a '%nor as /ra!! or !n/ors!! o& a b%ll o& !,(+an!. Nol%ab%l%t# %s atta(+!/ to t+! *a#!! unl!ss +! !n/ors!s t+! %nstru'!nt.

W+%l! r!turn%n t+! /%s+onour!/ (+!@u!s3 +# (ross%n(l!ar%n

sta'*s ar! (an(!ll!/ b# us M

W%t+out (an(!llat%on o& (ross%n sta'*s3 no ot+!r bank %ll b! abl! to

r!(!%"! t+! *a#'!nt o& t+! %nstru'!nt !"!n %ns*%t! o& b!%n aut+or%!/

b# t+! *a#!!. S!(t%on 1); o& t+! N!ot%abl! Instru'!nts A(t *ro+%b%ts

*a#'!nt o& a (+!@u! (ross!/ to to bank!rs !,(!*t +!n on! bank!r

%s (oll!(t%n t+! (+!u! as an a!nt &or t+! o!+t!r.

W+# t+! *ass%n o&&%(!rs (an(!l t+! s%natur! or t+u'b

%'*r!ss%on on t+! (+!@u!s%t+/raal &or's +%l! *ass%n t+!

%nstru'!nt M

T+!r! %s no l!al r!@u%r!'!nt to (an(!l t+! s%natur!s or t+u'b

%'*r!ss%ons o& t+! /ra!rs o& t+! (+!@u!s%t+/raal &or's +%l!

*ass%n t+! %nstru'!nt. T+%s %s /on! %t+ a "%! to r!(or/%n t+at t+!

*a#'!nt o& t+! %nstru'!nt +as b!!n &%nall# an/ %rr!"o(abl! 'a/!. T+%s

also !l%'%nat!s t+! (+an(!s o& /oubl! *a#'!nt. >o!"!r3 t+!

s%natur! s+oul/ b! (an(!ll!/ %n su(+ a a# t+at t+!s! ar! not

obl%t!rat!//!&a(!/BANKING RATI$NA4ES 8 PART: 01)



26/56



W+# s+oul/ o*!rat%ons %n t+! a((ounts o& a (usto'!r ar! to b!

sto**!/ %''!/%at!l# on r!(!%*t o& %n&or'at%on o& +%s /!at+ M

T+! /!at+ o& a (usto'!r t!r'%nat!s t+! (ontra(t b!t!!n +%' an/ +%s

bank b!(aus! o& t+! *!rsonal natur! o& t+! (ontra(t an/ t+! 'an/at!

%"!n b# t+! (usto'!r to t+! bank. T+! (r!/%t balan(! on t+!

(usto'!rs a((ount "!sts %n +%s *!rsonal r!*r!s!ntat%"!sl!al +!%rs.

T+!r!&or!3 u*on r!(!%*t o& not%(! o& +%s /!at+3 all o*!rat%ons on t+!

a((ount ar! sus*!n/!/

T+! (ont!nts o& lo(k!r ar! not allo!/ to b! r!'o"!/ b# t+! l!al

+!%rs on t+! str!nt+ o& su((!ss%on (!rt%&%(at! 8 +# M

Fn/!r s!(t%on 5;0 o& t+! In/%an Su((!ss%on a(t3 a su((!ss%on

(!rt%&%(at! %s rant!/ %n r!s*!(t o& an# /!bt or s!(ur%t# an/ t+!

s!(ur%t# +as b!!n /!&%n!/ un/!r sub s!(t%on ) t+!r!o&. It %n(lu/!s onl#

*ro'%ssor# not!s3 /!b!ntur!s3 sto(ks an/ ot+!r s!(ur%t%!s o& t+!

C!ntral or Stat! Go"!rn'!nt or ot+!r s!(ur%t# %ssu!/ b# or on b!+al& o&

a lo(al aut+or%t#. 4o(k!r +%r!/ b# a /!(!as!/ (usto'!r /o!s not &all

un/!r t+! /!&%n%t%on o& s!(ur%t#. T+! lo(k!r %s allo!/ to b! o*!n!/ or

o*!rat!/ onl# on t+! str!nt+ o& a l!tt!r o& a/'%n%strat%on rant!/ b#

t+! (ourt un/!r s!(t%on )1= 1 o& t+! In/%an Su((!ss%on a(t.

Su((!ss%on (!rt%&%(at!s ar! %ssu!/ b# t+! (ourts o& (o'*!t!nt

Hur%s/%(t%on onl# &or /!bts an/ s!(ur%t%!s b!lon%n t+! /!(!as!/. T+!#

ar! not a**l%(abl! to art%(l!s k!*t %n a sa&! (usto/#. ?or lo(k!rs an/

art%(l!s k!*t %n sa&! (usto/#3 t+! (la%'ants +as to obta%n l!tt!r o&

a/'%n%strat%on &ro' t+! (ourt


27/56

Do(u'!nt su(+ as ra%la# r!(!%*t3 (+!@u!s3 /!'an/ /ra&t /ra&ts

!t( ar! bran/!/ %t+ t+! banks (ross%n sta'* %''!/%at!l# on

t+!%r r!(!%*t 8 +# M

T+%s %s /on! to *r!"!nt an# '%sus! o& t+! %nstru'!nt %n t+! (as! o& %ts

losst+!&t. Banks (ross%n sta'* %n/%(at!s t+at t+! sa%/ %nstru'!nt %sun/!r t+! (+ar! o& t+! bank o& t+! bank an/ %t s+oul/ not b! /!alt

%t+ %n t+! abs!n(! o& banks s*!(%&%( /%s(+ar!. Banks (ross%n

sta'* %n/%(at!s t+at t+! sa%/ %nstru'!nt %s un/!r t+! (+ar! o& t+!

bank an/ %t s+oul/ not b! /!alt %t+ %n t+! abs!n(! o& banks s*!(%&%(

/%s(+ar!.




W+# +al& #!arl# /!b%t balan(! (on&%r'at%ons ar! obta%n!/ b#

banks &ro' t+! borro!rsuarantors %n (as+ (r!/%t3 o"!r/ra&t an/

t!r' loan a((ounts M

?%rst3 t+! balan(! (on&%r'at%on l!tt!rs also a/"%s! t+! borro!r as to

t+! a'ount o& %nt!r!st /!b%t!/ to t+!%r a((ount /ur%n t+! +al& #!ar.S!(on/l#3 !a(+ su(+ (on&%r'at%on oul/ %"! a &r!s+ *!r%o/ o&

l%'%tat%on to t+! bank an/ t+us t+! (ont%nu%t# o& l!al "al%/%t# o& t+!

/!bt %s !nsur!/

W+%l! (r!at%n !@u%tabl! 'orta! o& a *ro*!rt# &or s!(ur%t# o& a

loan or a/"an(!3 banks r!@u%r! t+!%r a/"o(at!s to (arr# out

s!ar(+ %n t+! sub-r!%strars o&&%(! an/ sub'%t a l!al s!ar(+



28/56

r!*ort &or t+! last t+%rt# #!ars on t+! 'ortaors %''o"abl!

*ro*!rt#. W+# M

Claus! 5 a o& t+! s(+!/ul! to t+! 4%'%tat%on a(t3 1


29/56

T+! /!bts /u! &ro' t+! bank!r on t+! (urr!nt or sa"%ns a((ount %s

not !n&or(!abl! unt%l a(tual /!'an/ %s 'a/! &or *a#'!nt. T+!r!&or!3

t+! bank!r (annot s!t u* t+! 4%'%tat%on a(t. In t+! (as! o& a &%,!/

/!*os%t r!(!%*t3 t+! r!turn o& &%,!/ /!*os%t %s a (on/%t%on3 *r!(!/!nt to

t+! %t+/raal o& 'on!#. W+!r! t+! r!turn o& t+! r!(!%*t or book %s a(on/%t%on *r!(!/!nt to r!*a#'!nt or r!(o"!r# o& t+! 'on!#3 %ts r!turn

&%,!s t+! start%n *o%nt o& t+! o*!rat%on o& t+! statut!.

BANKING RATI$NA4ES 8 PART: 00<



Balan(! s+!!t t+ou+ *r!*ar!/ on t+! bas%s o& a(tual &%ur!s an/

%s /ul# au/%t!/3 +as %ts on l%'%tat%ons. W+# M

Balan(! s+!!t %s a *os%t%on stat!'!nt an/ not a &lo stat!'!nt. It

/o!s not %n/%(at! t+! tr!n/3 as su(+ no '!an%n&ul (on(lus%on (an b!

/ran &ro' t+! balan(! s+!!t

It r!(or/s t+! *ast *!r&or'an(! o& t+! oran%at%on. T+!# /o not

*ortra# t+! (urr!nt *os%t%on o& t+! bus%n!ss3 'u(+ l!ss o& t+! &utur!

s+a*! o& t+%ns to (o'!. It %s t+us a *ost 'ort!' anal#s%s o& t+! *ast

transa(t%ons rat+!r t+an a u%/! &or /!(%s%on 'ak%n &or t+! &utur!

(ours! o& a(t%on

Co'*ar%son o& /%&&!r!nt &%r's %n t+! %n/ustr# b!(o'!s /%&&%(ult s%n(!

&%r's &ollo /%&&!r!nt a((ount%n '!t+o/s

To *r!s!nt +!alt+# *os%t%on3 %n/o /r!ss%n %s r!sort!/ %n t+!

balan(! s+!!t an/ so'!t%'!s au/%tors 'a# not b! abl! to %/!nt% t+!

abo"! /!&%(%!n(%!s



30/56

It /o!s not r!&l!(t non &%nan(%al as*!(ts su(+ as natur! an/ @ual%t# o&

'ana!'!nt &un(t%ons3 >RD *ol%(%!s !t(

Banks s+oul/ not &%nan(! aa%nst a((o''o/at%on b%lls. W+# M

A((o''o/at%on b%lls /o not r!*r!s!nt !nu%n! tra/! transa(t%ons3 nor

!n/ us! (an b! !nsur!/ an/ t+!# ar! (+a%n bas!/ transa(t%ons an/on(! t+! (+a%n %s brok!n3 t+! r%sk !,*osur! b!(o'!s "!r# +%+

As *!r S!(t%on 51 o& R!s!r"! Bank o& n/%a a(t3 b!ar!r DP not!

an/ b!ar!r b%ll o& !,(+an! ar! %ssu!/ b# R!s!r"! Bank o& n/%a.

W+# M

S!(t%on 51 o& RBI a(t *ro+%b%ts s*!(%&%(all# t+! %ssu! o& *ro'%ssor#

not!3 b%ll o& !,(+an! an/ /!'an/ /ra&t *a#abl! to b!ar!r on /!'an/.

$nl# (urr!n(# not!s %ssu!/ b# t+! o"!rn'!nt or RBI (an b! %ssu!/ to

b!ar!r on /!'an/

n/%an banks ar! r!@u%r!/ 'an# t%'!s to (on&%r' &or!%n banks

l!tt!rs o& (r!/%t. T+!# tak! !,tra (ar! +%l! (on&%r'%n t+!

&or!%n l!tt!r o& (r!/%ts

B# (on&%r'%n t+! l!tt!r o& (r!/%t3 In/%an Bank b!(o'!s *art# to t+!

l!tt!r o& (r!/%t. It %s an un/!rstan/%n !,!(ut!/ b# t+! bank to +onour

t+! l!tt!r o& (r!/%t

It !nta%ls &%nan(%al l%ab%l%t# on t+! *art o& t+! (on&%r'%n bank.

T+! (on&%r'%n bank 'ust +a"! &ull knol!/! o& status an/ @ual%t# o&

o*!rat%ons3 t+! &%nan(%al stan/%n o& t+! 4C %ssu%n bank an/ also t+!

r%sk !,*osur! o& t+! (ountr#BANKING RATI$NA4ES 8 PART: 00=



31/56



W+# banks ar! not allo%n a/"an(! aa%nst t+! t!r'

/!*os%t r!(!%*ts %ssu!/ b# ot+!r banks M

T+! bank %ssu%n t+! t!r' /!*os%ts +as a r%+t o& s!t o&& as a !n!rall%!n t+!r!on. I& t+!s! r%+ts ar! !,!r(%s!/ b# t+! bank +%(+ +as

%ssu!/ t+! t!r' /!*os%t3 t+! loan or a/"an(! rant!/ b# an# ot+!r

bank aa%nst su(+ t!r' /!*os%t s+all b! r!n/!r!/ uns!(ur!/

W+%l! rant%n a/"an(! aa%nst s!(ur%t# o& t!r' /!*os%t r!(!%*ts3

blank un/at!/ /%s(+ar! %s obta%n!/ 8 +# M

T+%s %s /on! to obta%n *a#'!nt o& t+! t!r' /!*os%t !"!n b!&or! t+!

/at! o& %ts 'atur%t#3 %& t+! n!!/ so ar%s!

W+!n a l%&! %nsuran(! *ol%(# %s r!ass%n!/ a&t!r t+! a/"an(! +as

b!!n *a%/ t+! *ol%(#+ol/!r %s a/"%s!/ to /o a &r!s+ no'%nat%on or

an ass%n'!nt 8 +# M

Fn/!r s!(t%on 5


32/56

T+!r!&or!3 u*on r!(!%*t o& not%(! o& +%s /!at+3 all o*!rat%ons on t+!

a((ount ar! sus*!n/!/

A (+!@u! s%n!/ b# an a!nt %s *a%/ !"!n a&t!r +%s /!at+ 8 +# M

T+! *r%n(%*al +o %s t+! (usto'!r o& t+! bank %s al%"!. >o!"!r3 t+!

/!at+ o& t+! *r%n(%*al t!r'%nat!s t+! a!n(#W+# borro!rs ar! r!@u%r!/ to (ontr%but! 'ar%n on loans an/

a/"an(!s M

6ar%n %s t+! borro!rs (ontr%but%on to t+! (ost o& *roH!(t. It !nsur!s

%n"ol"!'!nt o& t+! borro!r %n t+! bus%n!ss3 !nt!r*r%s!!n/!a"ors.

6ar%n also *ro"%/!s (us+%on to t+! bank %n t+! !"!nt o& /%str!ss sal!

o& t+! s!(ur%t# &or t+! r!al%at%on o& t+! /u!s.

BANKING RATI$NA4ES 8 PART: 00;



W+# banks k!!* %nta(t %.!. uno*!n!/ t+! not%(!s s!nt to t+!

borro!rs an/ r!turn!/ un/!l%"!r!/ b# t+! *ostal aut+or%t%!s M

To *ro/u(! t+!s! !n"!lo*!s %n t+! (ourt o& la as an !"%/!n(! o&

/%s*at(+ o& not%(! as t+!# ar! bran/!/ %t+ *ostal /at! sta'*s

W+# t+! *a#'!nt o& bank /ra&t (annot b! sto**!/ M

A bank /ra&t %s tr!at!/ as a b%ll o& !,(+an!3 /ran b# a bank on %tson bran(+3 an/ +!n(! a n!ot%abl! %nstru'!nt. T+! r!lat%ons+%* o&

t+! *ur(+as!r o& a /ra&t an/ t+! bank &ro' +%(+ t+at /ra&t %s

*ur(+as!/ %s '!r!l# t+at o& /!btor an/ (r!/%tor. T+! *ur(+as!r o& t+!

/ra&t (an3 t+!r!&or!3 (all u*on t+! bank &ro' +%(+ +! +as *ur(+as!/

%t to (an(!l t+! /ra&t an/ *a# ba(k t+! 'on!# to +%' at an# t%'!

b!&or! t+! /ra&t +as b!!n /!l%"!r!/ to t+! *a#!!. A&t!r t+! /!'an/



33/56

/ra&t %s +an/!/ o"!r to t+! *a#!!3 or at an# rat! %t +as (!as!/ to b! %n

*oss!ss%on o& t+! *ur(+as!r +%'s!l&3 an# subs!@u!nt +ol/!r %n /u!

(ours! 'a# !t oo/ t%tl! t+!r!to an/ t+! bank as /ra!r %s boun/ to

+onour t+! (o''%t'!nt o& *a#'!nt o& 'on!# (onta%n!/ %n t+! /ra&t. A

+ol/!r %n /u! (ours! %ll ala#s su((!!/ %n !n&or(%n %ts *a#'!ntaa%nst t+! bank %n a (ourt o& la. T+! /!'an/ /ra&t %s ala#s %ssu!/

b# a bank onl# a&t!r +a"%n r!(!%"!/ t+! (ons%/!rat%on an/ as su(+3

t+! *a#'!nt o& a /!'an/ /ra&t %ssu!/ b# t+! bank (annot b! sto**!/

T+! t!r' /!*os%t r!(!%*t !n/ors!/ b# t+! /!*os%tor %n &a"our o& a

t+%r/ *art# an/ a((o'*an%!/ b# a s!*arat! l!tt!r o& aut+or%t# %s

not *a%/ to a *!rson ot+!r t+an t+! /!*os%tor +%'s!l& 8 +# M

T+! t!r' /!*os%t r!(!%*ts %ssu!/ b# t+! banks ar! n!%t+!r trans&!rabl!

nor n!ot%abl! an/ as su(+3 t+!%r *a#'!nt %s 'a/! onl# t+! /!*os%tor

n t+! (as! o& /o(u'!nts r!@u%r%n att!stat%on b# to *!rsons3

on! %tn!ss s+oul/ n!(!ssar%l# b! a bank o&&%(!r. W+# M

T+%s %ll !nabl! t+! bank to !t t+! /o(u'!nts *ro"!/ %n t+! (ourt o&

la b# *ro/u(%n t+! bank o&&%(!r +o %tn!ss!/ t+! /o(u'!nt. I&

bot+ t+! %tn!ss!s ar! outs%/!rs3 t+!# 'a# not obl%! t+! bank b#

%"%n !"%/!n(! %n t+! (ourt an/ %n su(+ an !"!ntual%t#3 t+! bank 'a#

los! t+! (as! aa%nst t+! borro!r

W+# no'%n!!s s%natur! %s not obta%n!/ on t+! no'%nat%on &or' M

A no'%n!! %s not a *art# to t+! (ontra(t o& /!*os%t. T+! /!*os%tor 'a#

(+an! t+! no'%n!! an# t%'! at +%s s!!t %ll. ?urt+!r3 t+! /!*os%tor'a# not l%k! to /%"ul! t+! &a(t o& t+! no'%nat%ons to t+! no'%n!!




34/56



W+# l%&! %nsuran(! *ol%(# %s ass%n!/ to t+! bank +%l! allo%n

an# loan or a/"an(! aa%nst %t M

T+%s %s /on! to !nsur! t+at t+! r%+ts o& t+! *ol%(#+ol/!r ar! l!all#trans&!rr!/ %n &a"our o& t+! bank an/ %n (as! o& an# !"!ntual%t#3 t+!

bank (an &all ba(k u*on t+! su' assur!/ &or t+! r!*a#'!nt o& %ts /u!s

n (as! o& (as+ (r!/%t l%'%ts3 oo/s ar! %nsur!/ to t+! !,t!nt o&

t+!%r &ull 'ark!t "alu! +# M

To a"o%/ o*!rat%on o& a"!ra! (laus! +%(+ a/"!rs!l# a&&!(ts t+!

%nsurabl! %nt!r!st o& t+! l!n/%n bank as t+! bank !ts onl# *ro rata

*ro*ort%onat! (la%'

W+# a borro!r %s %n&or'!/ o& t+! t!r's an/ (on/%t%ons o& a loan

or a/"an(! t+rou+ a san(t%on l!tt!r M

Banks obta%n (ons!nt to t+! t!r's an/ (on/%t%ons o& t+! loans or

a/"an(!s san(t%on!/ to a borro!r on a san(t%on l!tt!r so t+at +! 'a#

not tak! t+! *l!a t+at +! %s unaar! o& t+! sa'! to a"o%/ t+! l%ab%l%t#

at a lat!r sta!

W+# Go"!rn'!nt *ro'%ssor# not!s n!!/ not b! sta'*!/ M

In t!r's o& s!(t%on 5 o& t+! In/%an Sta'* a(t3 *ro'%ssor# not!s

!,!(ut!/ &or t+! o"!rn'!nt /o not attra(t sta'* /ut#

W+%l! allo%n t+! a/"an(! aa%nst s+ar!s3 banks obta%n

su&&%(%!nt nu'b!r o& blank trans&!r /!!/s /ul# s%n!/ b# t+!

s+ar!+ol/!r 8 +# M

$bta%n%n blank trans&!r /!!/s at t+! t%'! o& rant%n &%nan(! ob"%at!s

t+! n!(!ss%t# o& t+! (ons!nts%natur! o& t+! s+ar!+ol/!r at t+! t%'!

sal!s o& s+ar!s %n (as! o& /!&ault. It !nabl!s t+! bank to trans&!r t+!

s+ar!s to t+! bu#!r !as%l#

W+# loan /o(u'!nts s+oul/ not b! blank or un/at!/ at t+! t%'!

o& !,!(ut%on M

T+! borro!r 'a# !"a/! l%ab%l%t# an/ t+! banks sus%t &or t+! r!(o"!r#

o& t+! /!bt 'a# &a%l %& %t %s *ro"!/ t+at t+! /o(u'!nts !r! blank orun/at!/ at t+! t%'! o& !,!(ut%on. Su(+ /o(u'!nts ar! not l!all#

!n&or(!abl!

W+# (r!/%t a**ra%sal %s /on! !"!n +%l! !,t!n/%n non &un/ bas!/

&a(%l%t%!s to t+! (usto'!rs M

In t+! (as! o& non &un/!/ &a(%l%t%!s 8 l%k! %ssu! o& bank uarant!!s an/

l!tt!r o& (r!/%ts3 t+! l%ab%l%t# o& t+! bank %s (ont%n!nt. I& t+! (usto'!r


35/56

&a%ls to +onour t+! (o''%t'!nt un/!r t+! uarant!!3 t+! bank 'a# b!

(all!/ u*on to *a# t+! a'ount. T+!r!&or!3 t+! r%sk b!%n un/!rtak!n b#

t+! bank s+oul/ b! *ro*!rl# !"aluat!/ b!&or! rant%n t+! non &un/!/

&a(%l%t%!s to t+! (usto'!rs




$*!rat%ons %n an a((ount ar! sto**!/ on t+! /!at+ o& t+!

a((ount+ol/!r 8 +# M

T+! /!at+ o& t+! a((ount+ol/!r t!r'%nat!s t+! (ontra(t b!t!!n t+!

(usto'!r an/ t+! bank

W+!t+!r !@u%tabl! 'orta! o& lan/ an/ bu%l/%ns s%tuat!/ %n

(anton'!nt ar!a (an b! a((!*t!/ b# banks M

6orta! o& t+! *ro*!rt%!s s%tuat!/ %n (anton'!nt ar!a %s not

(ons%/!r!/ as a "al%/ on! as *!r t+! (anton'!nt boar/ rul!s

W+# +al& #!arl# /!b%t balan(! (on&%r'at%ons ar! obta%n!/ b#

banks &ro' t+! borro!rsuarantors %n (as+ (r!/%t3 o"!r/ra&t an/

t!r' loan a((ounts M

?%rst t+! balan(! (on&%r'at%on l!tt!rs also a/"%s! t+! borro!r as to

t+! a'ount o& %nt!r!st /!b%t!/ to t+!%r a((ount /ur%n t+! +al&-#!ar.

S!(on/l#3 !a(+ su(+ (on&%r'at%on oul/ %"! a &r!s+ *!r%o/ o&

l%'%tat%on to t+! bank an/ t+us t+! (ont%nu%t# o& l!al "al%/%t# o& t+!

/!bt %s !nsur!/

W+at /o #ou '!an b# n/%an D!*os%tor# R!(!%*ts DR M



36/56

In/%an /!*os%tor# r!(!%*t %s an In/%an "!rs%on o& ADRGDR to attra(t

&or!%n %n"!st'!nts %n In/%a. In t!r's o& t+! (o'*an%!s %ssu! o&

In/%an D!*os%tor# R!(!%*ts 8 IDRs rul!s3 )007 not%&%!/ b# t+!

Go"!rn'!nt3 a (o'*an# %n(or*orat!/ outs%/! In/%a (an %ssu! In/%an

/!*os%tor# r!(!%*ts subH!(t to t+! &ollo%n:T+! *r! %ssu! *a%/ u* (a*%tal an/ &r!! r!s!r"!s o& t+! %ssu%n (o'*an#

s+oul/ b! at l!ast FS O 100 '%ll%on %t+ an a"!ra! turno"!r o& FS O

900 '%ll%on /ur%n t+! *r!(!/%n t+r!! &%nan(%al #!ars

T+! (o'*an# +as b!!n 'ak%n *ro&%ts &or at l!ast &%"! #!ars *r!(!/%n

t+! %ssu! an/ +as b!!n /!(lar%n /%"%/!n/ o& not l!ss t+an 10 !a(+

#!ar %n t+%s *!r%o/ an/ t+! *r! %ssu! /!bt !@u%t# rat%o %s not 'or! t+an

):1

T+! %ssu%n (o'*an# 'a# or 'a# not +a"! !stabl%s+!/ an# *la(! o&

bus%n!ss %n In/%a. T+! %ssu%n (o'*an# oul/ also +a"! to &ul&%ll t+!!l%%b%l%t# (r%t!r%a st%*ulat!/ b# t+! S!(ur%t%!s an/ E,(+an! Boar/ o&

In/%a an/ obta%n n!(!ssar# a**ro"als &ro' lo(al aut+or%t%!s.

A((or/%n to t+! IDR rul!s3 t+! %ssu%n (o'*an# s+all a**o%nt an

o"!rs!as (usto/%an bank3 a /o'!st%( /!*os%tor# an/ '!r(+ant bank!r

&or t+! *ur*os! o& %ssu! o& IDRs. T+! un/!rl#%n s+ar!s %ll b!

/!l%"!r!/ to an o"!rs!as (usto/%an bank +%(+ %ll aut+or%! t+!

/o'!st%( /!*os%tor# to %ssu! IDRs. IDRs %ll not b! r!/!!'abl! %nto

t+! un/!rl#%n !@u%t# s+ar!s &or a *!r%o/ o& on! #!ar &ro' t+! /at! o&

%ssu!. IDRs %ssu!/ b# an# (o'*an# %n an# &%nan(%al #!ar s+all not!,(!!/ 19 o& %ts *a%/ u* (a*%tal an/ &r!! r!s!r"!s. T+! IDRs %ll +a"

to b! /!no'%nat!/ %n In/%an ru*!!s3 %rr!s*!(t%"! o& t+! /!no'%nat%on

o& t+! un/!rl#%n s!(ur%t%!s

IDRs %ll b! l%st!/ on on! or 'or! r!(on%!/ sto(k !,(+an!s +a"%n

nat%on %/! tra/%n t!r'%nals %n In/%a an/ 'a# b! *ur(+as!/3

*oss!ss!/ an/ &r!!l# trans&!rr!/ b# *!rsons r!s%/!nt %n In/%a as

/!&%n!/ un/!r ?E6A 8 1


37/56



W+# aut+or%t# %n &a"or o& a t+%r/ *!rson to o*!rat! t+! &%r's

a((ount %s a((!*t!/ onl# a&t!r %t %s %"!n un/!r t+! Ho%nt

s%natur!s o& all t+! *artn!rs M

E"!r# *artn!r %s an a((r!/%t!/ a!nt o& t+! r!st o& t+! *artn!rs. W+!n

a *artn!r %s aut+or%!/ to o*!rat! u*on t+! &%r's a((ount3 +! /o!s so

%n t+! (a*a(%t# o& an a!nt o& t+! &%r'. As a rul!3 an a!nt (annot

/!l!at! +%s aut+or%t# +%'s!l& but (an /o so %t+ t+! !,*r!ss aut+or%t#

o& +%s *r%n(%*al. T+!r!&or!3 t+! 'an/at! &or +onour%n t+! (+!@u!s

/ran b# a t+%r/ *!rson3 on b!+al& o& t+! &%r'3 +as n!(!ssar%l# to b!

%"!n un/!r Ho%nt s%natur! o& all t+! *artn!rs.W+# 'ortaors s%natur! %s not obta%n!/ on t+! r!(%tal r!(or/!/

%n t+! '!'oran/u' book &or /!*os%t o& t%tl! /!!/s &or t+!

*ur*os! o& (r!at%n !@u%tabl! 'orta! %n &a"or o& t+! bank M

T+! r!(%tal %s r!(or/!/ on t+! '!'oran/u' book b# t+! bank as a

r!(or/ o& (r!at%on o& !@u%tabl! 'orta!3 as also to *ro"! t+!

%nt!nt%on o& t+! borro!r &or /!*os%t%n t+! t%tl! /!!/s o& t+! *ro*!rt#.

I& t+! s%natur! o& t+! 'ortaors %s also obta%n!/ %n t+!

'!'oran/u' book3 %t 'a# b! r!@u%r!/ to b! r!%st!r!/ attra(t%n a/

"alor!' sta'* /ut#. A 'orta! b# /!*os%t o& t%tl!-/!!/s /o!s notr!@u%r! an# r%t%n an/ b!%n an oral transa(t%on %s not a&&!(t!/ b# t+!

la o& r!%strat%on3 but %t %s usual &or t+! /!*os%t to b! a((o'*an%!/ b#

a '!'oran/u' %n r%t%n3 %& t+! /o(u'!nt *!r s! r!lat!s an !@u%tabl!

'orta!3 %t r!@u%r!s r!%strat%on3 but %& %t '!r!l# r!(%t!s a (o'*l!t!/

transa(t%on no r!%strat%on %s r!@u%r!/.


38/56

W+# ra(! *!r%o/ o& t+r!! /a#s %s %"!n on all b%lls or not!s

*a#abl! a&t!r a s*!(%&%!/ *!r%o/ o& t%'! or on a s*!(%&%!/ /at!

!"!n %& t+! b%ll (onta%ns t+! or/s 8 %t+out ra(! M

S!(t%on )) o& N!ot%abl! Instru'!nts A(t3 1==1 *ro"%/!s t+at !"!r#

*ro'%ssor# not! or b%ll o& !,(+an!3 not *a#abl! on /!'an/3 %s at'atur%t# on t+! t+%r/ /a# a&t!r t+! /a# on +%(+ %t %s !,*r!ss!/ to b!

*a#abl!. As t+%s %s statutor# *ro"%s%on3 t+! or/s %t+out ra(! on

t+! b%ll +as no '!an%n.

W+# r!"%"al l!tt!rs &or t+! loan /o(u'!nts ar! obta%n!/ &ro'

borro!rs an/ uarantors bot+ M

As t+! uarantor %s also a (oobl%ant3 a(knol!/'!nt o& /!bt %n t+!

&or'at o& r!"%"al l!tt!r s+oul/ b! obta%n!/ &ro' t+! borro!rs an/

uarantors bot+




W+# t+! *a#!! (annot sto* *a#'!nt o& a (+!@u! M

B!(aus! t+! 'on!# +!l/ %n t+! (urr!n(# (+!st %s t+! *ro*!rt# o& t+!

R!s!r"! Bank o& In/%a +!r!as t+! G!n!al 4!/!r r!&l!(ts t+! ass!ts

an/ l%ab%l%t%!s o& t+! bank onl#.W+%l! rant%n loans an/ a/"an(!s to Ho%nt sto(k (o'*an%!s3 +#

banks !t a s!ar(+ r!*ort &ro' t+! r!%st!r 'a%nta%n!/ b# t+!

R!%strar o& Co'*an%!s M

Co'*an%!s ar! r!@u%r!/ to &%l! %t+ t+! R!%strar o& Co'*an%!s3 t+!

*art%(ulars o& (+ar! (r!at!/ o"!r t+!%r ass!ts un/!r S!(t%on 1)9 o&

t+! Co'*an%!s A(t3 1


39/56

Co'*an%!s oul/ r!"!al an# !,%st%n (+ar! on t+! ass!ts o& t+!

(o'*an# an/ t+us &a(%l%tat! t+! bank to tak! t+! (r!/%t /!(%s%on.

W+# (ross!/ (+!@u!s s+oul/ not b! *a%/ a(ross t+! (ount!r M

Cross%n %s a /%r!(t%on b# t+! /ra!r to +%s bank!r to 'ak! *a#'!nt o&

t+! (+!@u! t+rou+ a bank3 or t+rou+ a *art%(ular bank %n t+! (as! o&a s*!(%al (ross%n. T+! *a#%n bank 'a# %nor! t+%s or/!r o& t+!

/ra!r onl# at %ts on *!r%l.

W+# banks /o not rant a/"an(! aa%nst t+!%r on s+ar!s M

It %s *ro+%b%t!/ un/!r S!(t%on )1-1-a o& t+! Bank%n r!ulat%on a(t 8

1


40/56

W+# sa&! (usto/# r!(!%*ts %n r!s*!(t o& /u*l%(at! k!#s o& t+!

bran(+ to b! k!*t un/!r t+! *!rsonal (usto/# o& t+! bran(+

'ana!r an/ not %n stron roo' M

It %s t+! *ra(t%(! %n t+! banks to k!!* t+! /u*l%(at! k!#s %n anot+!r

bran(+bank an/ t+! sa&! /!*os%t r!(!%*ts r!(!%"!/ %n l%!u o& +a"%n/!*os%t!/ t+! /u*l%(at! k!#s outs%/! t+! stron roo' as a

*r!(aut%onar# '!asur!. In t+! !"!nt o& loss o& on! s!t o& k!#s &or an#

r!asons3 t+!r! %ll b! r!@u%r!'!nt o& /u*l%(at! k!#s &or +%(+ sa&!

/!*os%t r!(!%*ts %ll b! r!@u%r!/3 an/ %& t+! r!(!%*t %s k!*t s!(ur!/ %n

t+! stron roo'3 %t %ll not b! *oss%bl! to o*!n t+! stron roo' an/

+!n(! o*!rat%ons %ll b! +a'*!r!/. T+!r!&or!3 to !nsur! un%nt!rru*t!/

(usto'!r3 %t %s n!(!ssar# to k!!* t+! sa&! /!*os%t r!(!%*ts outs%/! t+!

stron roo' but un/!r *ro*!r (usto/#.

W+# /a%l# "ou(+!rs o& t+! bran(+ ar! to b! s(rut%n%!/ %t+ /u!

/%l%!n(! b# t+! bran(+ 'ana!r M

T+%s %s /on! to k!!* a at(+ on t+! o*!rat%ons an/ (on/u(t o&

bus%n!ss o& t+! bran(+. %.!. %n&lo an/ out&lo o& bus%n!ss. To 'on%tor

transa(t%ons o& sus*%(%ous natur! an/ to !nsur! t+at t+! transa(t%ons

ar! *ass!/ b# aut+or%!/ o&&%(%als an/ ar! %t+%n t+!%r /%s(r!t%onar#

*o!rs an/ &urt+!r t+! transa(t%ons ar! a((ount!/ un/!r t+! (orr!(t

a((ount +!a/s

W+# not%n an/ *rot!(t %s n!(!ssar# %n t+! (as! o& usan(! b%lls

an/ not &or (+!@u!s an/ /ra&ts M

In t+! (as! o& usan(! b%lls3 /%s+onor %s not su**ort!/ b# an#

/o(u'!nt. To !stabl%s+ !"%/!n(! o& t+! /%s+onor3 not%n an/ *rot!st %s

n!(!ssar#. W+!r! a (+!@u! or /ra&t %s /%s+onour!/3 banks %n"ar%abl#

%"! t+! r!asons o& /%s+onor %n r%t%n t+rou+ (+!@u! r!turn%n

'!'o.

W+# t+! balan(! o& (urr!n(# (+!st %s no+!r! s+on %n t+!

G!n!ral 4!/!r M

B!(aus! t+! 'on!# +!l/ %n t+! (urr!n(# (+!st %s t+! *ro*!rt# o& t+!

R!s!r"! Bank o& In/%a +!r!as t+! G!n!ral 4!/!r r!&l!(ts t+! ass!tsan/ l%ab%l%t%!s o& t+! bank onl#

W+# banks !n!rall# ar! r!lu(tant to o*!n a((ounts &or

*ar/anas+%n o'an M

Su(+ la/%!s r!'a%n (o'*l!t!l# s!(lu/!/ an/ /!al %t+ t+!%r (los!

&a'%l# '!'b!rs onl#. A (ontra(t %t+ a *ara/anas+%n o'an %s


41/56

*r!su'!/ to +a"! b!!n %ntro/u(!/ b# un/u! %n&lu!n(!. Establ%s+%n

t+!%r %/!nt% %s sl%+tl# a /%&&%(ult task M

C$NS$4IDATI$N IN BANKING INDFSTR T>R$FG> 6ERGERS

?or a la#'an3 t+! or/s 8 '!r!rs3 a(@u%s%t%ons3 (onsol%/at%ons3 tak!

o"!rs !t(.3 all 'a# b! s%'%lar but t!(+n%(all# t+!s! ar! /%&&!r!nt. In

&a(t3 all t+!s! ar! "ar%ous a#s b# +%(+ t+! (or*orat! r!stru(tur%n

(an b! /on!. T+!s! ar! !,*la%n!/ as &ollos:

A. 6ERGERS $R A6A4GA6AT $NS:

T+! t!r' '!r!r or a'ala'at%on r!&!rs to a (o'b%nat%on o& to or

'or! (or*orat! %n t+%s (as! banks %nto a s%nl! !nt%t#. It 'a# %n"ol"!

!%t+!r:Absor*t%on: %.!. on! bank a(@u%r%n t+! ot+!r or

Consol%/at%on: %.!. to or 'or! banks (o'b%n! to &or' a n! !nt%t#. In

our (ountr# t+! l!al t!r' &or '!r!r %s a'ala'at%on

$t+!r a# o& (lass%%n '!r!r %s u*on t+! bas%s o& +at t#*! o&

(or*orat! (o'b%n!. $n t+! bas%s o& t+%s3 %t (an b! o& t+! &ollo%n

t#*!s:

>or%ontal '!r!r: T+%s %s t+! '!r!r o& (or*orat! !na!/ %n t+!

sa'! l%n! o& bus%n!ss. E.. '!r!r o& a bank %t+ anot+!r bank

J!rt%(al '!r!r: T+%s %s t+! '!r!r o& (or*orat! !na!/ %n "ar%oussta!s o& *ro/u(t%on %n an %n/ustr#

Conlo'!rat! '!r!r: T+%s %s t+! '!r!r o& (or*orat! !na!/ %n

unr!lat!/ l%n!s o& a(t%"%t%!s

?or t+! bank%n %n/ustr#3 t+! &%rst on! %s t+! 'ost a**l%(abl! t%ll /at!.

T+! r!st to ar! 'or! a**l%(abl! to bus%n!ss !nt%t%!s

B. ACF S T $N:

http://gaurisankar.blogspot.com/2011/07/consolidation-in-banking-industry.htmlhttp://gaurisankar.blogspot.com/2011/07/consolidation-in-banking-industry.html


42/56

T+%s 'a# b! /!&%n!/ as an a(t o& a(@u%r%n !&&!(t%"! (ontrol b# on!

(or*orat! o"!r t+! ass!ts or 'ana!'!nt o& t+! ot+!r (or*orat!

%t+out an# (o'b%nat%on o& bot+ o& t+!'.

It (an b! (+ara(t!r%!/ %n t!r's o& t+! &ollo%n:

T+! (or*orat!s r!'a%n %n/!*!n/!ntT+!# +a"! a s!*arat! l!al !nt%t#

C. TAKE$JER:

Fn/!r t+! 'ono*ol%!s an/ r!str%(t%"! tra/! *ra(t%(!s a(t3 tak! o"!r

'!ans a(@u%s%t%on o& not l!ss t+an )9 *!r(!nt o& "ot%n *o!rs %n a

(or*orat!

D%&&!r!n(! b!t!!n a(@u%s%t%on an/ '!r!r:

Alt+ou+ ! us! t+! t!r' a(@u%s%t%on an/ tak! o"!r %nt!r(+an!abl#

but %n &a(t t+! t!r' tak! o"!r !n!rall# s+os a +ost%l! a(t. To *ut %n

s%'*l! or/s3 +!n an a(@u%s%t%on %s &or(!/ or un%ll%n a(t3 t+!n %t %s(all!/ tak! o"!r

$B2ECTIJE BE>IND 6ERGERS AND ACFISITI$NS IN BANKING

INDFSTR:

T+! *robabl! obH!(t%"!s b!+%n/ '!r!rs an/ a(@u%s%t%ons 'a# b! as

&ollos:

To o"!r(o'! t+! *robl!' o& slo *a(! o& rot+ an/ *ro&%tab%l%t# /u!

to %/!n%n o& bank%n %n/ustr#. T+! *ubl%( s!(tor banks +a"! no to

(o'*!t! bot+ %t+ t+! *r%"at! banks an/ t+! &or!%n banks bot+ %n

t!r's o& *ro/u(ts an/ s!r"%(! *ara'!t!rsTo r!"%"! a loss 'ak%n bank as %t 'a# not b! abl! to r!stor! t+! non

*!r&or'%n ass!ts on %ts on

To ut%l%! t+! un/!rut%l%!/ 'ark!t *o!r %n t!r's o& r!%onal or

!ora*+%(al (o"!ra! %n t+! b!st *oss%bl! 'ann!r

To a(+%!"! so'! sort o& /%"!rs%&%(at%on T+%s +a**!ns +!n t+! '!r!r

%s "!rt%(al or (onlo'!rat!

To l%'%t (o'*!t%t%on an/ *r!"!nt o"!r(ro/%n an/ 'us+roo'%n u* o&

'an# banks

To a%n !(ono'%!s o& s(al! an/ %n(r!as! %n(o'! %n *ro*ort%on to l!ssa'ount o& %n"!st'!nt

To ut%l%! un/!rut%l%!/ r!sour(!s. T+! r!sour(!s %n(lu/! +u'an3

*+#s%(al or 'ana!r%al sk%lls

To (ar"! a n%(+! &or on!s!l& as a strat!%( !'*%r! bu%l/!r an/ a'ass

"ast !(ono'%( *o!r

B!n!&%ts o& '!r!rs an/ a(@u%s%t%ons:


43/56

In(r!as! %n t+! rot+ an/ !,*ans%on %n(r!as! %n *ro&%t 'ar%ns

strat!%( b!n!&%t *ro/u(t %nno"at%on

4%'%tat%ons o& '!r!rs an/ a(@u%s%t%ons:

D#s#n!r# !&&!(t str%"%n &or b%n!ss &a%lur! to %nt!rat! !ll

T+! (urr!nt s(!nar%o:

W%t+ t+! '!r!r o& (r%s%s r%//!n Global Trust Bank %t+ t+! D!l+%

bas!/ $r%!ntal Bank o& Co''!r(!3 a n! (+a*t!r +as b!un %n t+!

+%stor# o& bank%n s!(tor. T+! *robabl! r!asons b!+%n/ t+! s+oot%n

u* o& t+! *+!no'!non (all!/ (onsol%/at%on %s t+at &ro' t+! n!,t #!ar

t+! u%/!l%n!s &or t+! (a*%tal r!@u%r!'!nts %ll !t 'or! str%n!nt %t+

t+! Bas!l II (o'%n %nto &or(!. Also %t %s *roH!(t!/ t+at b# )003 t+!

In/%an !(ono'# %ll b! o*!n to s!r"%(! s!(tor as !ll an/ t+!n t+!

In/%an banks %ll +a"! to *ro"! t+!%r lobal (o'*!t!n(!

T+! su((!ss o& a bank /!*!n/s on *ro&%tab%l%t#T+! *ro&%tab%l%t# an/ 'ark!t%n o& *ro/u(ts /!*!n/s u*on lo (ost o&

t+! *ro/u(ts an/ 'ark!t%n *ol%(#

4o (ost o& *ro/u(ts (an b! !nsur!/ 'a%nl# b# lar! "olu'!s an/

r!/u(t%on %n o*!rat%onal (ost

C$RP$RATE S$CIA4 RESP$NSIBI4IT

T+! subH!(t o& (or*orat! so(%al r!s*ons%b%l%t# +as r%s!n to t+! to* ont+! a!n/a o& t+! *ol%(#'ak!rs3 'ana!rs an/ so(%al a(t%"%sts %n

r!(!nt t%'!s. $n! 'ot%"at%on &or %t %s t+! !'!r%n l!%slat%on %n

(or*orat! o"!rnan(!3 (o'*ulsor# '%n%'u' nu'b!r o& non-!,!(ut%"!

/%r!(tors3 an/ /%s(losur! o& &ar 'or! /!ta%ls o& t+! o*!rat%ons an/

&%nan(!s o& an !nt!r*r%s!3 %n(lu/%n @uart!rl# an/ s!'!ntal r!*ort%n.

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$n t+! ot+!r +an/3 (or*orat%ons ar! &%n/%n t+!'s!l"!s t+! (!ntr! o&

att!nt%on &ro' %n&lu!nt%al l rou*s an/ a%tat%on b# all k%n/s o&

a(t%"%sts. T#*%(al %ssu!s ran! &ro' un&a%r tra/! *ra(t%(!s3

!,*lo%t%n t+! *r%'ar# *ro/u(!rs o& t+! T+%r/ Worl/3 t!st%n o&

!,*!r%'!ntal &or'ulat%ons on an%'als an/ +u'an b!%ns3 la(k o& &ull/%s(losur! o& %n&or'at%on on a "ar%!t# o& '!/%(al r!s!ar(+ &%n/%ns

&ro' lun (an(!r to art+r%t%s3 +%(+ '%+t b! (onn!(t!/ to t+!

(onsu'!rs *!r(!*t%on o& t+! *ro/u(t

Cor*orat! so(%al r!s*ons%b%l%t# %s a (on(!*t +!r!b# (o'*an%!s

%nt!rat! so(%al an/ !n"%ron'!ntal (on(!rns %n t+!%r bus%n!ss

o*!rat%ons an/ %n t+!%r %nt!ra(t%ons %t+ t+!%r stak!+ol/!rs on a

"oluntar# bas%s. A*art &ro' tak%n a/!@uat! a(t%on to tr!at t+! &allouts

su(+ as !&&lu!nts3 a%r an/ at!r *ollut%on an/ so on3 'ust t+!# a//r!ss

%ssu!s o& t+! so(%!t# at lar!3 su(+ as t+! t+r!at o& AIDS3 t+!!*%/!'%(3 'alnutr%t%on a'onst un/!r *r%"%l!!/ (+%l/r!n3 labour

+ous%n s+orta!s3 %ll%t!ra(# an/ *oor @ual%t# o& /r%nk%n at!r.

Co'*an%!s t+at a/o*t Cor*orat! So(%al R!s*ons%b%l%t# usuall# /o so b#

!stabl%s+%n a (o/! o& (on/u(t3 /%ss!'%nat%n %t a'onst all

asso(%at!s3 !s*!(%all# t+os! +o a(t on t+!%r b!+al& or %n t+!%r *la(!3

su(+ as a/"!rt%s%n a!n(%!s an/ /!al!rs

6an# CSR %n%t%at%"!s outs%/! t+! r!al' o& bus%n!ss %n a *ur!l# so(%!tal

(ont!,t su(+ as r!&urb%s+%n an(%!nt t!'*l!s3 *la(!s o& *%lr%'a!3

bu%l/%n *la(!s &or *%lr%'s to sta# an/ so on ar! o&t!n (arr%!/ outt+rou+ Trusts (r!at!/ &or t+! s*!(%&%( *ur*os!s.

In Fn%t!/ K%n/o'3 %/!s*r!a/ *ubl%( su**ort %s &or (o'*an%!s to tak!

so(%al r!s*ons%b%l%t%!s %nto a((ount an/ %nst%tut%onal s+ar!+ol/!rs no

r!ar/ %t as an %ssu! +%(+ boar/s s+oul/ a//r!ss3 an/ t+! 'ark!t %s

t+! ult%'at! Hu/! o& r!l!"an(!

T+! &ollo%n ar! !,a'*l!s3 +o (or*orat!s ar! (o''%tt!/ to o&&!r

so'!t+%n ba(k to t+! so(%!t#:

T+! A% Pr!'H% &oun/at%on (+os! t+! ba(kar/ r!%on o& Nort+!ast

Karnataka to k%(k o&& t+! *%lot *+as! o& t+! 4!arn%n Guarant!!Prora''!

Tata St!!l %s a'on t+! &! In/%an (o'*an%!s to b! %n"%t!/ to Ho%n t+!

FN s*onsor!/ Global Co'*a(t ?oru'. Its CSR %n%t%at%"!s ar! s*r!a/

a(ross /%"!rs! ar!as su(+ as !n"%ron'!nt 'ana!'!nt3 !'*lo#!!

r!lat%ons3 !(ono'%( /!"!lo*'!nt3 (%"%( a'!n%t%!s an/ (o''un%t#

s!r"%(!s a'on ot+!rs


45/56

T+! Int!l Int!rnat%onal S(%!n(! an/ En%n!!r%n ?a%r %s t+! orl/s

lar!st *r!-(oll!! s(%!n(! (o'*!t%t%on +!r! stu/!nts &ro' o"!r

&ort# (ountr%!s ar! (o'*!t%n

T+! Gurukula t+at (+%s!ls *oor an/ un!'*lo#!/ #out+ %nto 'ast!r

(ra&ts'an %s at Canara Banks K P 2 Prab+u Art%sans Tra%n%n3Pro/u(t%on an/ 6ark!t%n C!ntr!

DATA WARE>$FSING 6INING

Data War!+ous%n %s t+! (o'*ut!r%s!/ *ro(!ss o& stor%n %n&or'at%on

&ro' "ar%ous /atabas!s %nto a s%nl! lo(at%on- (l!an!/ an/ *ro(!ss!/

%nto t+! r%+t &or'ats &or anal#s%s.

T+! st!*s %n"ol"!/ %n t+! *ro(!ss o& trans&!r o& ra /ata %nto /ata

ar!+ous! ar! :

E,tra(t%on :G!tt%n /ata &ro' or%%nal /atabas! an/ trans&!rr%n %t to

/atabas! %n&rastru(tur!

Consol%/at%on:Co'b%n%n /ata &ro' "ar%ous sour(!s %nto on! /atabas!

:Corr!(t%n /ata.:R!'o"%n unn!(!ssar# %n&or'at%on.

:Co'b%n%n all t+! (orr!(t!/ &%lt!r!/ /ata

:Translat%n /ata %nto t+! 'o/!l us!/ b# ar!+ous!.

Data '%n%n sorts t+! /ata (oll!(t!/ an/ *ro"%/!s "aluabl! an/

%nt!r!st%n *att!rns %t+ r!lat%"! (onn!(t%"%t# a'on t+!' on a

http://gaurisankar.blogspot.com/2011/07/data-warehousing-mining.htmlhttp://gaurisankar.blogspot.com/2011/07/data-warehousing-mining.html


46/56

su''ar%s!/ &or'. T+%s (oll!(t%"! an/ (lass%&%!/ %n&or'at%on s!r"!s as

a /!(%s%on su**ort tool &or *ro/u(t *r%(%n an/ *ro/u(t %nno"at%ons.

A *ara/%' s+%&t +as b!!n obs!r"!/ &ro' bus%n!ss %nt!ll%!n(! to

Knol!/! 6ana!'!nt %n bus%n!ss (%r(l!s to/a# as su**ort%"! /ataassu'!s r!at!r rol! %n /!(%s%on 'ak%n.

To/a#3 'an# a (or*orat! ar! o*t%n &or Data ar!+ous%n Data

'%n%n

In t+! Bank%n $*!rat%ons3Cor! Bank%n Solut%ons !ss!nt%all# &ollo

t+! (on(!*ts o& Data War!+ous%n an/ Data 6%n%n. It (o'b%n!s t+!

a/"anta! o& stora! o& /ata an/ anal#s%s o& t+! /ata t+us %'*art%n a

knol!/! bas! to t+! bus%n!ss $ran%sat%on.

In t+! &utur! bus%n!ss orl/3 knol!/! a"a%labl! t+rou+ Data

6%n%n oul/ slol# r!n/!r t+! +u'an bus%n!ss %nt!ll%!n(!

r!/un/ant. It ont b! a on/!r3 %& a *ro/u(t %s /!s%n!/ b# t+!

(o'*ut!r s#st!' on %ts on %t+out t+! %nt!r"!nt%on o& t+! +u'an

&or(! tak%n %nto a((ount t+! total%t# o& /ata on Custo'!r

s!'!ntat%on 3 t+!%r n!!/s an/ t+! banks r!@u%r!'!nts t+rou+ /ata

ar!+ous%n an/ /ata '%n%n t!(+n%@u!s.

>EDGE ?FNDS

>!/! &un/s ar! assort!/ %n"!st'!nt *ools +%(+ us! an arra# o&

+!/%n t!(+n%@u!s to r!/u(! *ort&ol%o "olat%l%t#. Stul)00; /!&%n!s

+!/! &un/s as unr!ulat!/ *ools o& 'on!# 'ana!/ b# an

http://gaurisankar.blogspot.com/2011/07/hedge-funds.htmlhttp://gaurisankar.blogspot.com/2011/07/hedge-funds.html


47/56

%n"!st'!nt a/"%sor3 t+! +!/! &un/ 'ana!r3 +o +as a r!at /!al o&

&l!,%b%l%t#. 6ana!rs o& +!/! &un/s &ollo (o'*l!, %n"!st'!nt

strat!%!s to l!"!ra! *ort&ol%o s%! t+rou+ so*+%st%(at!/ /!r%"at%"!

(ontra(ts . T+! !(ono'%( &un(t%on o& a +!/! &un/ %s t+! sa'! as t+!

&un(t%on o& a 'utual &un/. In bot+ t+! (as!s3 &un/ 'ana!rs ar!!ntrust!/ %t+ 'on!# &ro' %n"!stors %t+ a +o*! o& r!(!%"%n ba(k

%n%t%al %n"!st'!nt an/ +!alt+# r!turn. T+! +!/! &un/s3 +o!"!r3 o&t!n

'ak! us! o& (o'*l!, %n"!st'!nt strat!# %n"ol"%n lon an/ s+ort

*os%t%ons &or +!/%n t+!%r %n"!st'!nts aa%nst a/"!rs! 'ark!t

'o"!'!nts. T+!s! &un/s ar! t#*%(all# oran%!/ as *r%"at!

*artn!rs+%*s an/ o&t!n lo(at!/ o&&s+or! &or ta, an/ r!ulator#

r!asons. >!/! &un/s ar! lar!l# r!str%(t!/ to lar!-s(al! %n"!stors.

Su(+ a r!str%(t!/ a((!ss &a(%l%tat!s t+!s! &un/s to b#*ass t+!

r!%strat%on an/ ot+!r r!ulat%ons. >%stor%(all#3 t+!# +a"! attra(t!/+%+ n!t ort+ %n/%"%/uals an/ %nst%tut%onal %n"!stors. An arra# o&

%nst%tut%onal %n"!stors %n"!st%n %n +!/! &un/s +as %/!n!/

s%n%&%(antl# %n r!(!nt #!ars to %n(lu/! *!ns%on &un/s3 (+ar%t%!s3

un%"!rs%t%!s3 !n/o'!nts3 an/ &oun/at%ons

T+! !n!ral 'o/us o*!ran/% o& +!/! &un/s %s to %/!nt% an ass!t t+at

%s '%s*r%(!/ an/ /!"%s! +!/!s &or t+!%r *os%t%on so t+at t+!# b!n!&%t

&ro' t+! (orr!(t%on o& t+! '%s*r%(%n but ar! una&&!(t!/ b# an#t+%n

!ls!. T+!r! %s3 +o!"!r3 a *oss%b%l%t# t+at not all t+! *os%t%ons tak!n b#

+!/! &un/s ar! +!/!/ b!(aus! o& +%+ (osts or %ntr%ns%( /%&&%(ult%!s%n +!/%n aa%nst so'! r%sks. As t+! +!/! &un/s bas%(all# s!!k

%n!&&%(%!n(%!s %n t+! 'ark!t an/ tr# to (orr!(t t+!'3 t+!# (an *ra# an

%'*ortant rol! %n &%nan(%al 'ark!ts %n t!r's o& br%n%n s!(ur%t# *r%(!s

(los!r to &un/a'!ntal "alu!s. T+! !&&%(%!n(# o& +!/! &un/s %s !nsur!/

t+rou+ *a#'!nt to &un/ 'ana!rs3 +%(+ %s o&t!n l%nk!/ to %n(r!as!

%n %n"!stors !alt+. In a//%t%on3 'ana!rs t#*%(all# %n"!st s%n%&%(ant

a'ounts o& t+!%r on (a*%tal %n t+! &un/3 +%(+ al%ns t+!%r %nt!r!sts

%t+ t+at o& t+! %n"!stors an/ /%s(oura!s r!(kl!ss r%sk tak%n.

In 1


48/56

to 10 *!r (!nt b# )0093 %t %s !st%'at!/ t+at %n )00 'or! t+an FS O 1

tr%ll%on as %n"!st!/ %n +!/! &un/s Stul )00;

INDIAN DEP$SIT$R RECEIPT IDR

In/%an D!*os%tor# R!(!%*t IDR %s an In/%an "!rs%on o& ADRGDR to

attra(t ?or!%n In"!st'!nts %n In/%a.

In t!r's o& t+! Co'*an%!s %ssu! o& In/%an D!*os%tor# R!(!%*ts 8 IDRs

Rul!s3 )007 not%&%!/ b# t+! Go"!rn'!nt3 a (o'*an# %n(or*orat!/

outs%/! In/%a (an %ssu! IDRs subH!(t to t+! &ollo%n:

L t+! *r!-%ssu! *a%/ u* (a*%tal an/ &r!! r!s!r"!s o& t+! %ssu%n

(o'*an# s+oul/ b! atl!ast FS O 100 '%ll%on %t+ an a"!ra! turno"!r

o& FS O 900 '%ll%on /ur%n t+! *r!(!/%n t+r!! &%nan(%al #!ars

L t+! (o'*an# +as b!!n 'ak%n *ro&%ts &or atl!ast &%"! #!ars

*r!(!/%n t+! %ssu! an/ +as b!!n /!(lar%n /%"%/!n/ o& not l!ss t+an

10 !a(+ #!ar %n t+%s *!r%o/ an/

L t+! *r!-%ssu! /!bt-!@u%t# rat%o %s not 'or! t+an ):1

T+! %ssu%n (o'*an# 'a# or 'a# not +a"! !stabl%s+!/ an# *la(! o&bus%n!ss %n In/%a. T+! %ssu%n (o'*an# oul/ also +a"! to &ul&%ll t+!

!l%%b%l%t# (r%t!r%a st%*ulat!/ b# t+! SEBI an/ obta%n n!(!ssar#

a**ro"als &ro' lo(al aut+or%t%!s.

A((or/%n to t+! IDR rul!s3 t+! %ssu%n (o'*an# s+all a**o%nt an

o"!rs!as (usto/%an bank3 a /o'!st%( /!*os%tor# an/ a '!r(+ant

http://gaurisankar.blogspot.com/2011/07/indian-depository-receipt-idr.htmlhttp://gaurisankar.blogspot.com/2011/07/indian-depository-receipt-idr.html


49/56

bank!r &or t+! *ur*os! o& %ssu! o& IDRs. T+! un/!rl#%n s+ar!s %ll b!

/!l%"!r!/ to an o"!rs!as (usto/%an bank +%(+ %ll aut+or%! t+!

/o'!st%( /!*os%tor# to %ssu! IDRs. IDRs %ll not b! r!/!!'abl! %nto

t+! un/!rl#%n !@u%t# s+ar!s &or a *!r%o/ o& on! #!ar &ro' t+! /at! o&

%ssu!. IDRs %ssu!/ b# an# (o'*an# %n an# &%nan(%al #!ar s+all not!,(!!/ 19 o& %ts *a%/-u* (a*%tal an/ &r!! r!s!r"!s. T+! IDRs %ll

+a"! to b! /!no'%nat!/ %n In/%an ru*!!s3 %rr!s*!(t%"! o& t+!

/!no'%nat%on o& t+! un/!rl#%n s!(ur%t%!s.

IDRs %ll b! l%st!/ on on! or 'or! r!(on%!/ sto(k !,(+an!s +a"%n

nat%on %/! tra/%n t!r'%nals %n In/%a an/ 'a# b! *ur(+as!/3

*oss!ss!/ an/ &r!!l# trans&!rr!/ b# *!rsons r!s%/!nt %n In/%a as

/!&%n!/ un/!r ?E6A3 1


50/56

oul/ b! !l%%bl! to *art%(%*at!. Brok!rs %s+%n to !,t!n/ t+! &a(%l%t#

o& 'ar%n tra/%n to t+!%r (l%!nts ar! r!@u%r!/ to obta%n *r%or

*!r'%ss%on &ro' t+! !,(+an!s +!r! t+! &a(%l%t# %s *ro*os!/ to b!

*ro"%/!/. T+! brok!r 'a# us! +%s on &un/s or borro

&ro' s(+!/ul!/ (o''!r(%al banks an/ or NB?Cs r!ulat!/ b# t+!R!s!r"! Bank. At an# *o%nt o& t%'!3 total %n/!bt!/n!ss o& a brok!r &or

t+! *ur*os! o& 'ar%n tra/%n %s not allo!/ to !,(!!/ 9 t%'!s o& +%s

n!t ort+ as /!&%n!/ b# t+! SEBI. T+! total !,*osur! o& a brok!r

toar/s t+! 'ar%n tra/%n &a(%l%t# s+all b! %t+%n t+! s!l&-%'*os!/

*ru/!nt%al l%'%t an/ s+all not3 %n an# (as!3 !,(!!/ t+! borro!/ &un/s

an/ 90 o& n!t ort+. T+! !,*osur! to an# s%nl! (l%!nt at an# *o%nt

o& t%'! %s r!str%(t!/ to 10 o& t+! total !,*osur! o& t+! brok!r.

T+! 'ar%n arran!'!nt +as to b! ar!!/ u*on b!t!!n t+!aut+or%s!/ brok!r an/ t+! (l%!nt subH!(t o& t+! SEBI u%/!l%n!s

*r!s(r%b!/ on 6ar(+ 1


51/56

Banks ar! !,(+an%n (+!@u!s %n t+! (l!ar%n +ous!s to !t t+!

*a#'!nt &or t+! (+!@u!s to b! (oll!(t!/ b# t+!' at *r!s!nt. T+! &lo

o& *+#s%(al (+!@u!s %s st%ll +u! t+ou+ a /!(l%n%n tr!n/ %s not%(!/

/ur%n t+! last &! 'ont+s /u! to "ar%ous un'ann!/ /!l%"!r#

(+ann!ls %ntro/u(!/ b# t+! Banks su(+ as Cor! Bank%n3 An#+!r!

Bank%n3 Int!rn!t Bank%n3 D!b%t Car/ 3 AT6 (ar/ !t(.

Pr!s!nt %nt!r-bank *a#'!nt s#st!' %n"ol"!s /!l%"!r# o& (+!@u!s

%nstru'!nts !,(+an! o& s!(ur%t%!s an/ t+! s!ttl!'!nt tak!s *la(!

at t+! !n/ o& t+! /a#. >!n(! t+! s#st!' %s &rau+t %t+ t+! r%sk o&

&a%lur! o& *a#'!nt. R!al T%'! Gross S!ttl!'!nt RTGS %s a +%-t!(+

(o'*ut!r n!tork %ntro/u(!/ b# R!s!r"! Bank o& In/%a to tak! (ar!

o& %nt!r-bank *a#'!nt s#st!' on a r!al t%'! bas%s.

Fn/!r t+! RTGS n!tork !a(+ *a#'!nt %nstru(t%on b!t!!n banks %s

an !l!(tron%( '!ssa! *ro(!ss!/ b# t+! n!tork an/ s!ttl!'!nt %s

!&&!(t!/ %n/%"%/uall# an/ t+! b!aut# %s t+at %t +a**!ns (ont%nuousl#

t+rou+out t+! /a#. T+! *a#'!nt %nstru(t%on %s an !n/-to-!n/

!l!(tron%( '!ssa! &lo %t+out +u'an %nt!r"!nt%on. T+! '!ssa! %s

+%+l# s!(ur!/ %t+ (on&%/!nt%al%t# an/ %nt!r%t#. Non-r!*u/%at%on +as

b!!n %nbu%lt %n t+! s#st!' t+rou+ Publ%( K!# In&rastru(tur! an/

D%%tal C!rt%&%(at! %n an !n(r#*t!/ &or'. T+! or%%nat%n Part%(%*ant

Bank (an ass%n *r%or%t# &or t+! %nstru(t%on. 6!ssa!s %t+ t+! sa'!

*r%or%t# %ll b! @u!u!/ u* &or *ro(!ss%n on &%rst-(u'-&%rst s!r"!/ bas%s

subH!(t to a"a%lab%l%t# o& &un/s.


52/56

Int!r-Bank ?un/s Trans&!r Pro(!ss%n ?TP s#st!'

8 W%ll r!(!%"! t+! '!ssa! &ro' t+! or%%nat%n *art%(%*ant

8 Stor!s t+! '!ssa! %n t+! s#st!' 8 S!n/ t+! not%&%(at%on to t+! $r%%nat%n *art%(%*ant as !ll as to

t+! b!n!&%(%ar# *art%(%*ant r!ar/%n t+! a(t%on tak!n

8

RTGS !nsur!s r!/u(t%on o& (r!/%t r%sk an/ s#st!'%( r%sk as t+%s %s

/!"!lo*!/ us%n a r%%/ t%'! t!st!/ %nt!rnat%onal stan/ar/s. T+!

transa(t%ons (o"!r!/ un/!r RTGS ar! :

8 Int!r-Bank Transa(t%ons su(+ as (l!ar%n &un/s trans&!r

8 Custo'!r Transa(t%ons &!! bas!/Part%(%*ants on a((ount transa(t%ons

Part%(%*ants (an rout! t+rou+ t+! transa(t%ons o& t+!%r (usto'!rs

%nt!r bran(+ transa(t%ons also us%n RTGS .

T+! 'a%n %ssu! %s l%@u%/%t# 'ana!'!nt b# t+! *art%(%*ants to s@uar!

u* t+!%r transa(t%ons on a r!al t%'! bas%s /ur%n t+! /a#. >!n(! %ntra-

/a# l%@u%/%t# 'ana!'!nt assu'!s r!at!r rol! &or t+! (or*orat!

tr!asur%!s. RBI +as t+! s#st!' o& *ro"%/%n l%n! o& (r!/%t to t%/! o"!rt+! %ntra-/a# l%@u%/%t# *robl!'s b# t+! *art%(%*ants3 +o o&&!r

(ollat!ral s!(ur%t%!s. Banks (an %n%t%at! &!! bas!/ &un/s trans&!r

b!t!!n %nt!r-bank (usto'!rs a&t!r !"ol"%n a *r%(%n '!(+an%s' an/

o*!rat%onal *ro(!/ur! us%n RTGS n!tork.

W%t+ t+! %ntro/u(t%on o& RTGS3 t+! "olu'! o& (+!@u!s %ll b! r!/u(!/

to t+! bar! '%n%'u' un/!r (l!ar%n *ro(!ss an/ banks (an laun(+

n! &!! bas!/ *ro/u(ts &or trans&!r o& &un/s b!t!!n %nt!r-bank

(usto'!rs3 as t+! s#st!' uarant!!s (r!/%t o& &un/s on t+! sa'! /a#%t+%n ) +ours an#+!r! %n In/%a

SFGGESTI$NS SC>E6ES ?$R CFST$6ERS

http://gaurisankar.blogspot.com/2011/07/suggestions-schemes-for-customers.htmlhttp://gaurisankar.blogspot.com/2011/07/suggestions-schemes-for-customers.html


53/56

T+! rot+ o& an oran%at%on /!*!n/s u*on t+! su**ort !,t!n/!/ b#

%ts (l%!nts. 4!t %t b! a 'anu&a(tur%n un%t3 s!r"%(%n un%t or 'a# b! a

r!ta%l s!ll%n un%t. In t+! (as! o& a 'anu&a(tur%n un%t3 t+! bu#!r %s +%s(usto'!r an/ %n t+! (as! o& s!r"%(%n un%t3 t+! us!r o& +%s s!r"%(!s %s

t+! (usto'!r an/ %n t+! (as! o& r!ta%l s!ll!r3 t+! bu#!r %s +%s (usto'!r.

T+! b!st 'ark!t%n sk%ll %s to (orn!r t+! (usto'!rs an/ toar/s

attra(t%n t+! (usto'!rs3 oran%at%ons s+oul/ *la# a "%tal rol!. T+!#

s+oul/ a/"!rt%s! %n t!l!"%s%ons3 n!s*a*!rs an/ t+rou+ +an/outs

+!r!%n t+!# s+oul/ !,*la%n %n /!ta%l about t+!%r *ro/u(ts. In 'an#

(as!s3 t+! (usto'!r bas! %s str!nt+!n!/ b# or/ o& 'out+ onl#. T+!

!,%st%n (usto'!rs +o ar! sat%s&%!/ %t+ t+! s!r"%(!s *ro"%/!/ b# t+!

oran%at%ons s*r!a/ t+! '!ssa! to t+!%r &r%!n/s3 r!lat%"!s an/n!%+bours an/ t+!# b!(o'! t+! n! (l%!nts &or t+! oran%sat%ons.

A'on t+! "ar%ous strat!%!s *la#!/ b# t+! oran%at%ons3 I su!st an

%nno"at%"! '!t+o/ b# +%(+ t+! oran%at%ons (an *la# a "%tal rol! %n

(orn!r%n t+!%r (usto'!rs. In In/%a !s*!(%all# so'! banks +a"!

s*!(%&%( s(+!'!s to a((!*t su!st%ons &ro' t+! (usto'!rs an/ on!

t+!# a((!*t t+! su!st%ons t+!# +onour t+! (usto'!rs T+!

(usto'!r +o o&&!rs a b!tt!r su!st%on +%(+ %s !tt%n

%'*l!'!nt!/3 !ts a r!ar/ &ro' t+! oran%at%on %n k%n/ or %n t+!&or' o& (as+.

?or !tt%n su!st%ons &ro' t+! (usto'!rs3 so'! oran%at%ons /o

not +a"! an# s*!(%&%( s(+!'!s3 +o!"!r3 t+!# ar! o*!n '%n/!/ %n

r!(!%"%n t+! su!st%ons &ro' t+! (usto'!rs3 +!r!as %n so'!


54/56

(as!s3 t+!# +a"! s*!(%&%( s(+!'!s b# +%(+ t+!# attra(t su!st%ons

&ro' t+! (usto'!rs.

T+! s(+!'! (an +a"! t+! &ollo%n sal%!nt &!atur!s:

Sol%(%t%n su!st%ons &ro' !,%st%n (usto'!rs3 &or %'*ro"!'!nt %n

s!r"%(! %n t+! oran%at%on

$n(! t+! su!st%ons ar! a((!*t!/ t+! (usto'!rs ar! +onour!/

an/or aar/!/

T+! (usto'!rs s+oul/ &!!l *rou/ +!n t+!# ar! +onour!/

T+! s(+!'! (an b! (on&%n!/ to (usto'!r (!ntr%( onl#

T+! su!st%ons s+oul/ b! %nno"at%"!3 or%%nal an/ &!as%bl!

T+! bran(+!s3 /%"%s%ons3 un%ts s+oul/ /%s*la# su%tabl! not%(! boar/s

*ro'%n!ntl# %n t+!%r un%ts an/ us! all t+!%r &oru's l%k! (usto'!rs'!!ts to *ro*aat! t+!%r (o''%t'!nts toar/s t+! (usto'!rs (aus!

an/ /r%"! +o'! t+! un%@u!n!ss

All su!st%ons r!(!%"!/ b# t+! (usto'!rs s+oul/ b! *ro*!rl#

a(knol!/!/

T+!r! s+oul/ b! a (ontroll%n un%t +!r! t+! su!st%ons r!(!%"!/

&ro' t+! "ar%ous un%ts (an b! *ool!/

T+! (ontroll%n un%t s+oul/ s(rut%n%! t+! su!st%ons *ro*!rl#

A (o''%tt!! (an b! &or'!/ an/ *!r%o/%(al '!!t%ns (an b! (on/u(t!/

to t+orou+l# "!r% t+! su!st%ons r!(!%"!/ an/ a /!(%s%on s+oul/b! arr%"!/ %n r!ar/ to t+! a((!*tab%l%t# o& t+! su!st%ons

$n(! t+! su!st%ons ar! &oun/ su%tabl! &or %'*l!'!ntat%on3 t+!

oran%at%on (an /!(%/! %n a((!*t%n t+! su!st%ons

T+! (usto'!rs +o +a/ sub'%tt!/ t+! su!st%ons s+oul/ b! *ro*!rl#

%n&or'!/ about t+! a((!*tab%l%t# o& t+! su!st%ons

T+!# s+oul/ b! +onour!/ an/ *ro*!rl# r!ar/!/ %n a**ro*r%at! &oru's

T+! /!(%s%ons o& t+! *ool%n (!ntr! s+oul/ b! &%nal %n a((!*tan(! o&

t+! su!st%ons.

T+! (usto'!rs su!st%on s(+!'! *la#s a "%tal rol! on t+! on! +an/ %n!tt%n b!tt!r %/!as &ro' t+! (usto'!rs an/ on t+! ot+!r +an/ %t %s an

%nno"at! '!t+o/ o& (o''un%(at%n t+!%r (o''%t'!nts to t+!%r

(usto'!rs


55/56

$ran%sat%ons +o +a/ not #!t !"ol"!/ an# su!st%on s(+!'!s &or

t+!%r (usto'!rs (an &or'ulat! su(+ s(+!'!s %n &utur! +%(+ %ll

/!&%n%t!l# +!l* %'*ro"%n t+!%r *!r&or'an(!.

TRFNCATI$N $? C>EFES

C+!@u! Trun(at%on %s a *ro(!ss %n +%(+ t+! *+#s%(al 'o"!'!nt o&

(+!@u!s %s (urta%l!/ at t+! (oll!(t%n bran(+ . T+! *+#s%(al %'a! o&

t+! (+!@u! t+! 6ICR /!ta%ls ar! (a*tur!/ at t+! Coll!(t%n Bran(+

an/ trans'%tt!/ !l!(tron%(all# to t+! auto'at!/ Cl!ar%n >ous!

t+rou+ /ata (o''un%(at%on n!tork.

As o& no3 t+! (usto'!r /!*os%ts t+! (+!@u! %n +%s bank bran(+.

Coll!(t%n Bran(+ s!n/s %t to %ts s!r"%(! bran(+. S!r"%(! bran(+ sorts

all t+! (+!@u!s /ra!! bank-%s! *+#s%(all# an/ t+! sa'! ar!

*r!s!nt!/ to t+! r!s*!(t%"! Banks . T+! (l!ar%n s!ttl!'!nt tak!s

*la(! on t+! n!t a'ount to b! r!(!%"!/ *a%/.

$n(! t+! %nar/ (+!@u!s ar! r!(!%"!/3 t+! r!(!%"%n s!r"%(! bran(+

sorts all t+! (+!@u!s bran(+-%s! an/ t+! sa'! ar! s!nt to r!s*!(t%"!

bran(+!s b# t+! s!r"%(! bran(+ &or /!b%t%n to t+! *art#s a((ounts. In

(as! o& (+!@u! r!turns3 t+! (+!@u! tak!s a r!turn Hourn!# %t+

su%tabl! r!"!rs! a((ount%n.

6u'ba% (l!ar%n >ous! alon! +an/l!s a "olu'! o& about .

lak+s %nstru'!nts *!r /a# un/!r (l!ar%n s#st!'. T+! ro%n "olu'!

http://gaurisankar.blogspot.com/2011/07/truncation-of-cheques.htmlhttp://gaurisankar.blogspot.com/2011/07/t

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The Tip of Indian Banking- Part3

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