Some Important Banking Terminology for IBPS PO Interview

Hi Guys, today we are sharing some important banking terms which are mostly asked in PO interviews. we are trying to cover almost all terms. these terms are:-

1. Real-time gross settlement (RTGS):- 

RTGS is a large value funds transfer systemwhereby financial intermediaries can settle interbank transfers for their own account as well as for their customers. The minimum value of transaction in RTGS system is Rs 2,00,000. The system effects final settlement of interbank funds transfers on a continuous, transaction-by-transaction basis throughout the processing day. Customers can access the RTGS facility between 9 am to 4:30 pm on weekdays and 9 am to 1:30 pm on Saturdays .

2.NABARD:-

National Bank for Agriculture and Rural Development (NABARD) is an apex development bank in India  NABARD was established on the recommendations ­ of Shivaraman Committee. NABARD was established by an act of Parliament on 12 July 1982 to implement the National Bank for Agriculture and Rural Development Act 1981 . NABARD replaced the Agricultural Credit Department (ACD) and RuralPlanning and Credit Cell (RPCC) of Reserve Bank of India, and Agricultural Refinance and Development Corporation (ARDC). Headquarters of NABARD is situated in Mumbai, Maharashtra, India. The Present Chairman of NABARD is Dr. Prakash Bakshi. NABARD completed its 25 years on12 July 2007 and Completed its 30year in 12 July, 2012. NABARD announced Rural Innovation award to celebrate it’s 30th foundation day. 

3.NO FRILLS ACCOUNT:-

No frill account is a type of bank account, with low / Zero balance requirement with extra-features removed.RBI came up with this No-frill concept, because poor people cannot open regular bank accounting having requirements like Rs.5000/- minimum balance etc.

So there are no frill accounts for them. So that poor people can open bank accounts and take loans, that’ll save them from the 36% interest rate charged by the evil money lenders. Account can be opened with a minimum initial deposits of Rs.5/- and maintained at the minimum balance of Rs 5, no penalty charges will be deducted in case the minimum balance reaches zero.The Account holders will not be eligible for Cheque Book and ATM card facilities. Maximum numbers of withdrawals are restricted to 30 every 6 months. Duplicate passbook may be issued to the account holder with a charge of Rs.10.

4.RTGS :-

It’s a fund transfer mechanism that enables money to move from one bank to another on a real time and gross basis. Simply put, real time means the transaction is settled instantly without any waiting period and gross means that it is not bunched with any other transaction.

You can transfer a minimum of Rs 2 lakh through RTGS; there is no upper ceiling though. The bank will charge you Rs25-Rs50 for an outward RTGS transaction, inward transactions are free. RTGS is the fastest inter-bank money transfer facility available through secure banking channels in India. But not all branches in India are RTGS enabled. Visit the Reserve Bank of India’s (RBI) website for a list of branches where you will get this facility. The RTGS customer service window for customers is available from 9.00 hours to 16.30 Monday to Friday and 9.00 to 13.30 on Saturdays.

5.Shadow Banking ?

A.shadow banking means those financial transactions which are not regulated  hence the risk involoved in these are very hig .shadow banking deals in money market instruments......and hence need money for early repayment . now what happens is they invest for long term .....and borrow for short term.......so this match creates problem coz of lack of liquidity...........and second thing as they are not regulated so they cant take help from any other organisation like for eg central banks.........the crisis which world faced during was coz of shadow banking also.

6.What is SEZ?

 A: SEZ means Special Economic Zone is the one of the part of government’s policies in India. A special Economic zone is a geographical region that economic laws which are more liberal than the usual economic laws in the country. The basic motto behind this is to increase foreign investment, development of infrastructure, job opportunities and increase the income level of the people.

7.What is SIDBI?

 The Small Industries Development Bank of India is a state-run bank aimed to aid the growth and development of micro, small and medium scale industries in India. Set up in 1990 through an act of parliament, it was incorporated initially as a wholly owned subsidiary of Industrial Development Bank of India.