- The 1st national income estimation was done by Dadabhai Naoroji for the year 1867-68 while the 1st scientific estimate was made by Prof V.K.R.V Rao for the year 1931-32.
- Money laundering refers to the process of conversion of money obtained illegally to appear as if it originated from legitimate sources in order to convert black money into white money.
- Financial inclusion means the provision of the delivery of financial services at affordable costs to sections of disadvantaged and low- income segments of the society.
- When the rate of inflation increases, purchasing power of money decreases. Inflation arises when consumer demand for goods and services is greater than the available supply or sellers increase their pricing in order to cover up increased production cost such as labour and components of the items they produce.
- Letter of credit is a letter that guarantees that the buyer will make payment to the seller of goods on time. Bank requires collateral for issuing it as if buyer defaults, bank will have to pay the amount. It is a useful instrument in international trade.
- Initial minimum paid-up capital for a private bank to commence business in India is 200 crore which need to be raised to 300 crore within 3 years. The promoter needs to contribute at least 40% paid-up capital which will be locked for 5 years.
- DICGC (Deposit Insurance and Credit Guarantee Corporation) was established on 15 July 1978 under DICGC Act 1981 to provide insurance cover to the bank customers for the money deposited in the bank. It insures a maximum amount of 1 lakh for both principal and interest amount.
- Scheduled banks are those included in 2nd schedule of RBI Act 1934 with reserves and paid-up capital not less than Rs. 5 lakh.
- In Regional rural Banks, Central government has shareholding of 50%, state government has shareholding of 15% and sponsor bank has shareholding of 35%.
- All Deposit accounts which have not been operated for 10 years or more are called unclaimed accounts.
- NBFC cannot accept demand deposits. They do not form part of the payment and settlement system and cannot issue cheques drawn on itself. Deposit insurance facility of Deposit Insurance and Credit Guarantee Corporation is not available to depositors of NBFCs.
- The State Bank of India was formerly known as “Imperial Bank of India” during the British rule. It was established on 1st July, 1955 under the recommendations of “Gorwala committee”.
- Narrow banking is a type of banking in which banks invest money mostly in government bonds and securities to avoid risk.
- Sir Osborne Smith was the first governor of Reserve Bank of India.
- Tagline of Punjab and Sindh Bank is “where service is a way of life” while that of Punjab National Bank is “The name you can bank upon”.
Test Your Memory
Take Quiz
The 1st national income estimation was done by
a. Gopal Hari Deshmukh
b. Dadabhai Naoroji
c. Jamanalal Bajaj
d. Baba Amte
___________ refers to the process of conversion of money obtained illegally to appear as if it originated from legitimate sources.
a. Money Laundering
b. Portfolio Money
c. Public Offerings
d. Venture Capital
Initial minimum paid-up capital for a private bank to commence business in India is
a. 50 Crore
b. 100 Crore
c. 300 Crore
d. 200 Crore
DICGC (Deposit Insurance and Credit Guarantee Corporation) was established in
a. 1980
b. 1979
c. 1978
d. 1989
Schedule Banks are the banks with Paid up capital and reserve not less than Rs.
a. 7 Lakh
b. 5 lakh
c. 10 lakh
d. 15 lakh
In Regional rural Banks state government has shareholding of
a. 10%
b. 15%
c. 35%
d. 25%
The State Bank of India was formerly known as
a. Imperial Bank
b. Central Bank
c. Supreme Bank
d. Elite Bank
__________ is a type of banking in which banks invest money mostly in government bonds and securities to avoid risk.
a. Reserve Banking
b. Braod Banking
c. Narrow Banking
d. Secure Banking
Who was the first governor of Reserve Bank of India?
a. Sir Arran Smith
b. Sir Olive Smith
c. Sir Henry Smith
d. Sir Osborne Smith
Tagline of Punjab and Sindh Bank is
a. The name you can bank upon
b. where service is a way of life
c. Relationships beyond Banking
d. One Family One Bank
