1. What is KYC?
Ans. It stands for 'Know Your Customer'. Its guidelines are prescribed by RBI. To open an account some personal information is required of the customer. The customer has to give his/her positive identification which will be objective by their respective banks.
2. What is LAF?
Ans. LAF stands for Liquidity Adjustment Facility. It is a monetary policy tool which allows the bank to borrow money, and adjusts their daily liquidity mismatches, through repurchase agreements.
3. What is Base Rate?
Ans. It is the low rate of interest in which bank is allowed to charge to its customers. No bank can offer loan at a rate lower than Base Rate to any of its customer unless rates mandated by Government.
4. What is the Banking Ombudsman Scheme?
Ans. Banking Ombudsman Scheme is Banking Regulation Act, introduced under section 35 A by RBI. This scheme offers an easy platform for the bank customers to log their complaints against certain services offered by the Banks.
5. What is Inflation?
Ans. Increasing in the price of services & goods that project Indian economy is known as Inflation. The increase in price exceeds the supply of goods & services.
6. What is FDI?
Ans. FDI(Foreign Direct Investment), The term FDI is for investing the foreign money in the Indian markets.
7. What is SWIFT?
Ans. It stands for Society for Worldwide Interbank Financial Telecommunication. All FOREX messages are sent through SWIFT. This code is used for international transfer of funds between Banks.
8. What are Non-Performing Assets?
Ans. This term is referred for bad loans. If the borrower defaults on a payment for 90 days whether principal or interest, the loan is named as NPA.
9. What is SLR Rate?
Ans. SLR(Statutory LiquidityRatio) is the percentage of it's NDTL(Net Demand and Time Liabilities). It is a commercial bank which has to maintain the liquid assets such as cash, gold, or any security related to the government before heading towards the customer.
10. What are Treasury Bills?
Ans. Treasury Bills are also known as T-Bills. This term is issued by the central government in the money market through auctions.
