Bankers Notebook by -Anuj Kumar

  At present bank accounts for Non- Resident Indian (NRIs)  has three categories : 1.  NRE- Non -resident (external) rupee account. 2.  NRO- Non- resident (ordinary) rupee account. 3.  FCNR(B) - Foreign currency non-resident (banks)accounts. These accounts can be distinguished as follows: While NRO and NRE  accounts can be kept in the from of current , saving or term deposit accounts, while FCNR(B) deposit  can be kept only in the form of term deposits, for period ranging from 6 months to 3 years. Money from an NRO account is non-repatriable , but NRE and FCNR deposits are repatriable. Remittances from abroad can be credited to any of these accounts . But earnings of NRIs on the property held by them in India, which are non-repatriable , can be credited only to NRO accounts. Interest earned on NRO accounts is eligible for repatriation.  An NRO  account may be jointly held  with residents while  NRE and FCNR (B) accounts cannot be jo...

  This topic is important for bank exams, as generally many questions are asked in bank exams and interview on bank accounts like what are different types of accounts in the bank, what is the difference between a current account and saving the account. So understanding this topic is very important. Various Types of Bank Accounts Saving Account  Regular Savings Current Account  Recurring Deposit Account  Fixed Deposit Account  DEMAT Account NRI Accounts 1) SAVINGS ACCOUNT:- a) Basic Savings Bank Deposit Accounts (BSBDA) This account will be considered as a normal banking service. For this account, maintenance of minimum balance is not required. ATM card/ ATM cum Debit card, Rupay card will be given for the account holders. There are going to be no limit on the number of deposits that can be made in a month but, account holders will be allowed most of 4 withdrawals in a month, which includes ATM withdrawals also. The above facilities will be given without any char...

  A cheque is an unconditional order addressed to a banker, signed by the person who has deposited money with a banker, requesting him to pay on demand a certain sum of money only to the order of the certain person or to the bearer of the instrument. TYPES OF CHEQUES- 1) Bearer Cheque Bearer cheques are the cheques which withdrawn to the cheque's owner. These types of cheques normally used for a cash transaction. For example  - Ram has a savings account in HDFC bank. He brought a cheque from his chequebook to the HDFC bank branch where he has an account. He can present the cheque to the bank and withdraw money from his account. This type of cheque is known as Bearer Cheque. 2) Order Cheque Order cheques are the cheques which are withdrawn for the payee(the person whose name is written on the cheque). Before making payment to that payee,cross-checks check the identity of the payee. For example  - Ram has a savings account in HDFC bank. He wanted to make payment o...

  Introduction Nowadays loan is a common word because everyone is familiar with it in one or other way. In simple language loan is an amount which is lending from one person, entity or a financial institution to another person, entity or financial institutions. Meaning: A loan is the lending of money from one source to another source for a specified period. A loan is a debt given by an organization to another organization with an interest rate. In a loan, a borrower borrows money from the lender with a certain rate of interest and pay back it in future. The main activities of financial institutions like banks, NBFC, is to provide a loan to the customer. Types of loan There are mainly five types of loan. 1) Secured loan In a secured loan, a borrower pledges some asset as collateral like property, car etc. A mortgage loan is a type of secured loan used by a customer. In a secured loan, a money is using to purchase a property. If in case the borrower fails to pay back the loan amount ...

  What is Banking Ombudsman (BO)? He hears customers’ complaints against banks. BO was first setup in UK. In India, RBI started this scheme in 1995. Appointment & Tenure Earlier RBI used to appoint reputed persons from banking, finance, management, legal etc. sectors as Banking Ombudsmen (BO). But now RBI has reserved this BO post for its own Chief General Managers and General Managers. Tenure: 3 years at a time. Reappointment: yes possible. Jurisdiction of Banking Ombudsman? Banking Ombudsman (BO) Scheme applies to whole of India (including Jammu and Kashmir). Banking Ombdusmen have jurisdiction over All commercial banks (scheduled and non scheduled, public and private) Regional rural banks scheduled primary co-operative banks NBFCs (BO’s Jurisdiction limited to “loan” part.) Banking Ombudsman is not a replacement of Consumer forum/courts. He merely supplements them. Banking Ombudsman deals with matters less than or equal to Rs.10 lakhs. Here are some examples situation where ...

  What is CRR? CRR means Cash Reserve Ratio. Banks in India are required to hold a certain proportion of their total deposits with RBI in cash form. Right now, CRR is about 4.75% that means if people deposit total Rs.100 in SBI, then SBI would have to deposit Rs.4.75 in RBI. This is CRR or Cash Reserve Ratio. CRR rule  doesnot  apply to  Non Banking Financial Companies (NBFC), Mutual funds or insurance companies. What is Scheduled Commercial Bank? Scheduled banks are those banks which have been included in the second schedule of the Reserve bank of India act of 1934. The banks included in this schedule list should fulfill two conditions. The paid capital and collected funds of bank should  not be less than Rs. 5 lakhs . Any activity of the bank will not adversely affect the interests of depositors [ hahaha, does it mean Non-scheduled banks are allowed to adversely affect the interests of depositors !? ] Examples of Scheduled Commercial Banks Public Sector Privat...