banking

Bank terminology for interview

2013-03-07T06:49:00.002-08:00

LAF- is a monetary policy tool which allows banks to borrow money through repurchase agreements from RBI.

It is used to aid banks in adjusting the day to day mismatches in liquidity. LAF consists of repo and reverse repo operations.

Banks borrow money from Reserve bank of India to meet short term needs by selling securities to RBI with an agreement to repurchase the same at predetermined rate and date.

minimum bid for LAF is 5 crore and in multiple of 5 crore..

Securities which are used are transferable Central Govt. dated securities and treasury bills.

what is repurchase agreement????

lets understand it in layman language..
suppose dodo (SBI) needs Rs.80 from RBI. dodo goes to RBI and asked them to give me rs80, but RBI is not his father-in-law, SUBBU will ask for some thing in return na.....
so dodo provide them security and say that i will buy my security paying rs100 when india-australia series gets over...
now dodo got Rs.80 but promised to pay Rs.100... this difference is the interest (the repo rate) and agreement of buying back the security is the repurchase agreement.....

Repo Rate- is the rate of interest at which RBI subscribe government security to other SCB.
Or repo rate is the interest rate that RBI charges from SCB when they borrow for short period of time i.e upto 90.

Banks borrow money from Reserve bank of India to meet short term needs by selling securities to RBI with an agreement to repurchase the same at predetermined rate and date.
The rate charged by RBI for this transaction is called the repo rate. Repo operations therefore inject liquidity into the system.

Reverse repo rate- is the rate of interest that reserve bank of india pays to the commercial bank when they park their excess liquidity with the RBI.
Reverse repo operation is when RBI borrows money from banks by lending securities. The interest rate paid by RBI is in this case is called the reverse repo rate. Reverse repo operation therefore absorbs the liquidity in the system.

NOTE- CRR is also parked with RBI , but it does not fetch any interest. The money deposited above the CRR will fetch interest which is 100 basis point or 1% below the repo rate.

MSF- is the scheme through which bank can borrow up to 2% of their net demand and time liabilities from RBI for 24 hours or one overnight. The interest charged by RBI is 1% more than the repo rate.
the minimum amount that can be borrowed is 1 crore and after that in multiples of 1 crore.
this facility reduces volatility in overnight rate.

Now if have read carefully you will find that both REPO and MSF are short term loan borrowed by banks from RBI. Interest on MSF is more than that on REPO. SO why any bank will go for MSF???
What is the difference between the two ??????

REPO- borrowed by plegding G SECS over and above the SLR requirement of bank... whereas MSF is borrowed on certain percentage of NDTL well within the SLR requirement.. or you can say that MSF is borrowed to maintain SLR...

FOR SLR and CRR click here

ARCHIVES

DI , PERCENTAGE and ratio...

2013-03-06T02:29:00.001-08:00

from last few days i am getting reminder for posting some tricks on DI.... but DI has no trick.. why???? because tricks are used to get an exact answer of the question but in DI section most of the answer are approx...........

and this is the best part to solve DI..... we only have to find approx answer to any question .........    and for that i have ways..........

every DI is followed by set of 5 question... out of which 2 can solved by using ultimate trick..... rest 3 question have approx answer..........

NOTE- use ultimate trick only when addition and subtraction is asked because in these question answer are exact. never use the trick with ratio and percentage as they have approximate answer........

neither i am going to tell you any specific value of certain percentage like 12.5% = 1/8 and so on.... this you already knew nor i am going to tell u something new.......

believe me what i am going to tell , u already knew them but u dont knw how to apply it... thats the only problem......

lets take a number say 49486
Q. what is 50% of this no.? ( divide no. by 2)
Q. what is 25% of this no? ( divide no. by4 or half of 50%)
Q. what is 10% of this no.? ( put decimal at ONES place)
Q. what is 5% of this no.?   ( half of 10% or put decimal to
                                             ONES place for the answer of 50%)
Q. what is 1% of this no.?   ( put decimal at TENS place)
Q. what is 2% of this no.?    ( double of 1%)

all of u can tell the answer without using your pen and copy..... u can do this in your mind and can write the answer directly...... ryt na???????

now if we know these value , which we already knew , then any problem of DI be easily solved.......

mainly the question of DI deals with ratio and to some extent percentage..... ratio and percentage are interchangeable......
in DI we mainly get question like
Q. X is how much % of y. = X/Y
Q. X increases y by how much %.= X-Y/Y

so lets start with solving fraction as percentage.......

Q. 660 is what percent of 5100?

solution = we know that 10% of 5100 is 510... ryt
we need it to 660 .... ryt? and so far we have 510 therefore we only need 150 more to get the approx answer..........
now if you look that 1% of 5100 is 51.... we need 150 more which means we need 1% 3times...
therefore our answer will be little less than 13 ( 10+3%) ....... the answer is 12.9%......

right now you will be feeling that it is much time that's because you are not accustomed to this method and believe me after practicing 15 - 20 question you will be calculating the answer in your mind............

NOTE-- for solving such question your first step is very important...
   first look at 10% and 50% of the number ... it gives you a
                rough idea of the answer
               you can make digit of numerator and denominator equal
               by multiply or dividing by 10..... but always keep it in
                 mind while giving you final answer....

Q. Dodo has Rs.230 initially but spend Rs.34 on 'mobile recharge'. what % of money is now left with him?

SOL-- 230-34/230
          = 196/230
now 10% of 230 is 23.... very small as compared to 196... leave it..
take 50% which is 115 somewhat closer but still the difference is 80...
now half of 115 (25%)= 57(approx).... and 10% = 23
now total is 50%+25%+10%= 85 approx ..........
and 115+57+23 = 195
see u get the answer.....

you may feel problem in calculating the way i am doing ... so now i will tell you how i started doing it.....

Q. 256/290

below is the way i used to calculate in starting......

Percentage	Amount 256 /290
50%	145
25%	72 (39 more needed for 256)
12.5+1% total= 88.5	36 + 1%= 38.9 255.9

NOTE- after taking 2nd%(25% in this case) locate the remaining difference always........

so ur answer will be 88.5 approx......
with practice you can simply write % value and total it to get the answer........

LETS TAKE ONE MORE EXAMPLE...

Q.7526 is what % of 67....

our fraction is 7526/6700 ( making equal)
now as our numerator is greater therefore ans will be more than 100...... ryt na????
difference between them is nearly 826...

Percentage	Amount 826 for 6700
10%	670
2%	67 *2= 134
(initial)100+10+2=112	804

so our answer sud be approx. 112.xx..........................

ALL MATHS TRICK

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PERCENTAGE

2013-03-05T05:29:00.003-08:00

Australia become the first team to lose by an innings after declaring their first innings closed.......
hahahhahhahahahhahahha
i love it......

OK lets move on to our topic i.e percentage....

today first i will discus one specific type of question based on percentage.....
when there is combination of increase and decrease ( increase+increase , increase+decrease , decrease+decrease)

use positive sign for increase and negative sign for decrease......

lets take an eg. price of petrol increase by 25% but raj wants to spend only 15% more on petrol. so by how much he sud reduced his consumption??????

use the formula = +25 - X -25X/100 = 15
   2500 - 1500 = 125X
   8% answer...

this method can also be used in population increse , CI when each year have different rate of interest to determine the overall rate...

eg. population of city increases by 10% in the first year and then decreased by 15 % in the next year. find present population if initial was 10000.

now u can first find the 110% for 1st year then find 85% for next year and give your answer .....
but use the direct formula and solve in no time...........
solution =   10 - 15 - 150/100
                   -5 - 1.5= -6.5%
this is the overall change in the population over the two year...

QUESTION. price of petrol increase by 25%. by how much % sud use of petrol be decreased to maintain the initial budget....???????????

now as the overall change must be 0 (zero)\

    25 - X -25X/100 = 0
    2500 - 125X = 0
    20 = X
it means use sud decreases by 20%.........

NOW what if there are 3 succesive increases , decrease in the question????????

no problem use the same method twice... two tears at once and then take their answer with last year...

like this.   Q. Population first increased by 10% then decreased by 15% and then increased by 20 over three years. if initial population is 10000 find new population.

10 -15 -150/100 = -6.5 (solved earlier)
now -6.5 + 20 - 130/100
             20 - 7.8 = 12.2%

NOTE- if there is equal increase and decrease of % then the overall result is ALWAYS negative i.e overall loss happens .... and the answer = square the % and put decimal at two places..

eg. for 8% increase and decrease the answer will 0.64 (8 square and decimal at 2 places)

some times we come across such question in exam....
Q. a man loses 12.5% of his money and after spending 70% of the remaining , he is left with rs. 210. find his initial money?
after reading question we know that initial money will be more....
so use the direct formula...

what if in question the initial sud be less???????????? like in this example..........
Q. dodo deposited Rs. 4800 in locker. in first year he deposited 20% of the amount. in 2nd year he deposited 25% of the increased amount in locker. find the amount in locker at present??????

reading the question tells us that initial money is less...
so the formula becomes inverse like

NOTE- tomorrow i will take percentage and DI both....

TRICKS ARCHIVE

INTERVIEW ARCHIVE

INTERVIEW TIPS

2013-03-03T10:13:00.001-08:00

guys i have just cleared my IBPS PO 2 .....

most of the candidates like me have had appeared for the first time and are going to face the interview for the first time????????

FIRST TIME.. huh... great deal .......

hmmm lots of thoughts coming in the mind....

Wats gonna happen, what they will ask, what if am not able to give the correct answer,
feeling tensed??????????

so just to relax you a bit i am here sharing my experience along with 1000's other candidates experience....... well i know no matter how hard i try to console u .... it will not work.... its natural.....
and that the only key to success BE NATURAL.... DO NOT MANIPULATE YOURSELF it will only bring harm to you............

no matter in which part of the country u r going to give ur interview.... there is nothing to fear .....

NOTE- they are not there to judge your knowledge... they just want to know whether you can speak or not....... r u ill mannered?? can u work under pressure?????
that's it... no more no less..............................

DEAR candidates nearly 70% of your interview gets over by the time you take your seat in front of the panel....... i am not joking about this....

out of the rest 30% only 10% carries your answer..... rest is the way you answer the question......... so whats there to fear about only 10%??????????

believe me it does not matter whether you know the answer or not..... all that matters is your honesty..... if you do not the answer simply say SORRY SIR i dnt know the answer.............

never ever try to out smart them....................

LETS START WITH INTERVIEW...
average interview time for po2 was 12 to 15 mins....

out of this first 5 to 7 mins are nothing but just about yourself...
interview for 95% candidates start like this..

whats ur name? tell me abt urself.....
and blah blah blah blah....

and they come to your last qualification.... some question from there...
now comes the banking part........
on average 5-7 question all related to basic banking...
like types of account, fdi , fii, atm, ... in short very very general questions .....

i have loads to write about the interview ... but excess of every thing at once is not productive....

so m ending this article here.... next i will be writing about DOS AND DONTS... how to face it in betr way...

meanwhile you can surf the following section if you wish...

INTERVIEW PREPARATION

SYLLOGISM

2013-03-03T03:54:00.006-08:00

hello every body, today we will discus the concept of syllogs...
even i am providing some tips on syllogs, i still feels that wein diagram method is the best way to solve them.....

O.K but then why i am wasting every body's precious time??????
that's because as far as we have statement and conclusion in positive sentence we do not feel any problem in solving them..... but when words like NO, SOME NOT, is used in combination with other we get a bit confused...

so in this article i will be discussing only 3 things about syllogs...
1. NO, some not in combination.
2. Either and OR case.
3 Possibility case.

All you need is this table to solve any question based on syllogs...

COMBINATION OF ALL, SOME,and NO......

1. ALL- ALL = answer can be given in all and some.
eg. all kite is rope
   all rope is fish
conclusion = all kite is fish
some fish is kite

2. ALL- NO = answer will ALWAYS be in NO type..

eg. all kite is rope
   NO rope is fish
Conclusion = all the valid conclusion for this case will be in NEGATIVE ONLY , i.e NO

3. SOME- ALL = answer only in some type.
eg. some kite is rope
   all rope is fish
here answer will be only in SOME TYPE
like = some rope is kite
some fish is kite
          some kite is fish etc....

4. SOME- NO = answer ONLY IN SOME NOT...
eg. SOME kite is rope
   NO rope is fish
the valid conclusion are only in SOME NOT only from one side...
like = SOME kite is NOT fish
   SOME fish is NOT ROPE
NOTE = here we can't say that SOME fish is NOT kite

5. NO - ALL = answer in some not from both side...
eg. NO kite is rope
   ALL rope is fish
the valid answer is in SOME NOT from both side.
like= SOME kite is NOT rope
          SOME fish is NOT kite...

NOTE = look here conversion is being done from both sides.....

6. NO- SOME = answer only in SOME NOT from both side
just like above....

NOTE = major confusion happens when we have mixture of positive and negative sentence in the statement.. therefore CASE number 2, 4,5 and 6 are important............

EITHER and OR

THE most important thing about solving this is that u have to always look in to the CONCLUSION to find out the either-or case................
in every syllogs question we see one option as either this ( option A) or that( option B)

EITHER and OR case takes place between these three complimentary pairs only provided that they share same element between them............ only when there is no relation is there for complimentary pairs
between ALL and SOME NOT
between SOME and SOME NOT
between SOME and NO.....

NOTE = no other case can have this option as correct.........

lets solve examples... for same statement i am asking 3 question
1 if conclusion A is correct
2 if conclusion B is correct
3 if either conclusion A or B is correct
4 if neither conclusion A or B is correct
5 if both conclusion A or B is correct

statement = some noses are stomach
                     some fingers are chair
                     all fingers are eyes
                     no eyes are horse

Q1. conclusions. A.some eyes are chair    B. some fingers are nose

Q 2. A. some stomach are eyes    B. some eyes are not stomach

Q3.   A. some chairs are finger       B. some noses are not eyes

ANS= questn 1 = option 1
         question 2 = option 2 (same elements with some - some not)
          question 3. = option 1 ( they have some - some not in them but the elements
                                                                        are different...      chair - fingers and noses- eyes)

LAST POSSIBILITY CASE....

just one simple line DRAW the normal wein diagram and all those relation which are not present in the diagram are the possibilties........

hope now doubts IF ANY are clear........

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FOR INTERVIEW PREPARATION

RATIO

2013-02-28T04:46:00.000-08:00

Gone are the days when the “slow and the steady” used to win the race, now it’s just the “fast and the furious” who snatches the cream and especially in the case of BANK, you aren’t supposed be just ‘fast and furious’ but more importantly accurate!

SO here i am back with another trick on ratio ...
after reading this post you can solve problems without using you pen or pencil....

so lets start with an example........

question . the present ratio between preeti and asha age is 9:13 respectively. 8 years ago the ratio was 7:11 respectively.

1.what is preeti present age?
2. preeti age 8 years ago?
3. difference in their ages?
4. asha present age?
5. asha age 8 years ago?

every bank aspirant can solve this question but how many can solve it in 10 seconds?
you can after reading and applying this trick..

lets get to question..
after writing the ratio in this form look for first vertical and then horizontal difference

initial ratio = 9:13
final ratio = 7:11 ( 8years ago)

if the vertical difference between two ratio are equal , we will take the difference of vertical ratio.
difference of vertical ratio = 2
now this change of 2 comes because of 8 yrs (given in question)

                therefore 2( ratio) = 8
                            so 1 (ratio) = 4

NOW LETS GIVE THE ANSWERS..
1.what is preeti present age?
   present age ratio of preeti = 9 (given in question)
                      so 9 X 4 = 36 years

2. preeti age 8 years ago?
preeti age ratio after 8 years is 7 so 7 X 4 = 28 years

3. difference in their ages?
difference in ratio of ages is 4 so 4 X 4 = 16 years..

REST TRY YOURSELF.....

now second case when vertical difference is not same...

eg. the ratio between preeti and asha age is 9:13 respectively. after 10 years the ratio becomes 8:11 respectively.

now      initial ratio = 9:13
              final ratio = 8:11
clearly the difference between vertical ratio is not common ( 9-8=1 but 13-11=2)

therefore first we have make them equal...
to do so take the difference between horizontal initial ratio i.e 4 and multiply it to final ratio...
similarly take the difference from final ratio i.e 3 and multiply it to the initial ratio...
now the new ratio becomes
                                               initial ratio = 27 : 39
                                               final ratio   = 32 : 44
NOTE- ONCE you have made this new ratio forget every thing about the previous one... now you have to deal with this new ratio to solve your question.....

now you solve it just like above........

NOTE- for clearing the quant section your grip on ratio, percentage and the ultimate trick should be very good.......

ALL MATHS TRICK CLICK HERE

INTERVIEW PREPARATION CLICK HERE

THE ULTIMATE TRICK PART 2

2013-02-27T02:23:00.000-08:00

Do not read this article unless you have read the previous article on the ultimate trick

in this article i will be explaining how to use the trick...
all of us know that in bank exam we will not be given question where simple addition, subtraction is required but a combination of both can be there...

so without wasting any time lets start with an example....

THE example i am taking here are the previous year question from different exams...

1. solve 5124 - 829 + 731 - 435 = ? ( 4591)

solution by trick = 3 - 1 + 2 - 3
                          = 5 - 4 = 1 ( ans 4+5+9+1 = 1)

2. solve 10789 +3946 - 2310 -1223 = ? ( 11202)

solution = 7 + 4 - 6 - 8= -3 (minus3)

now here is a catch in the trick...
whenever your answer in the trick comes negative and the option are positive then subtract only the number from 9...
so for above question 9 - 3 = 6 final answer...... ( 1+1+2+0+2 = 6)

3. 3876 X 285 -17620 = ? + 5487 ( no doubt without trick more then 1 min require to solve this question)
option are A. 1171355   B. 1081553
lets solve it by trick...

but in hindi there is a saying NAKAL KE LYE BHI AKAL KI JARURAT HOTI HAI...

u need presence of mind for cheating therefore from the next time when you use this trick try to find the last digit of the answer
rewriting the question with a change   3876 X 285 -17620 - 5487 = ?

As in this question when we multiply 6 X5 we get last digit as 0 (ZERO) and when we further subtract (17620) we again get 0( zero). and then in the last subtraction ( 5487) we get last digit as 3

now apply the trick and get sure shot answer...
6 X 6 - 7 - 6 = -13 = -4 ( MINUS 4 = 5) remember something?
now look at the options both have sum digit of 5 but option B ends with 3 having sum digit 5 therefore it is the correct answer.....

4. -56 X 29 + 435 = ?
options are A. -706440    B. -1189    C. -1860

apply the trick ..
      -2 X 2 + 3 = -1 (minus1) therefore the answer option B (-1189)

now as you can see in this question i have not subtracted the negative value from 9.... why?
because the option given are already in negative value... if they were in positive then only you have to subtract from 9 as in the earlier case.......

5. (24.2)sqr + ( 46.8) sqr - ( 37.2) sqr = ? + 1542.72
option are
A. 150.68
B. 160.28
C. 155.42
D. NONE OF THESE

honestly tell me how many candidates are going to attempt this question provided that you do not know this trick??
a look on question tell us how much time its gonna take to solve...
but with this trick... lets see.....

(8 X 8) + (9X9) - (3X3) = ? + 3
64 + 0 - 0 =? + 3
1- 3 = ? ( minus2) remember something ....
answer will be none of these ( option are positive so you have to subtract from 9)

NOTE- apart from this the trick can be used in DI section to a great extent.... you have to practice this trick a lot

good luck ....

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SQUARE ROOT

2013-02-26T05:26:00.000-08:00

Finding square root of any number..

before starting you have to remember this square chart..... look for the last digit of the square....
1 = 1
2 = 4
3 = 9
4 = 6 (16)
5 = 5 (25)
6 = 6 (36)
7 = 9 (49)
8 = 4 (64)
9 = 1 (81)

now all we have have to do is to apply the rule as applied in finding the cube roots CLICK HERE TO KNOW

lets take an example..
eg. find square root of 3481

step1. divide number in group of two starting from the back ..... 34 and 81

step2. look at the it shows that 1 comes for 9 and 1 both in the last. therefore either root will end with 1 or 9

step3. now we are left with 34 ... square of 5 is 25 which is less than 34 but square of 6 is 36 which is more ...... therefore our answer sud be either 51 or 59...

Now to get the correct answer you must know how to find square of any number ending with 5...
if not then here it is...
square of 25= 625 ( write 25 at the and then multiply the number left with the next higher number)
= 2 X 3 ( higher number)= 6
another example 65= 4225
= 6 X 7 ( higher number) 42 and write 25 after this= 4225

Lets get back to our chart once again.. you will see that last number repeats itself after crossing the square of 5....

1 and 9 = 1
2 and 8 = 4
3 and 7 = 9
4 and 6 = 6

now square root of 3481 can either be 51 or 59 as explained above...
to know the correct answer simply find the square of 55 ( lies in between 51 and 59) = 3025....
now as 3481 is greater than 3025 therefore 59 is the square root of 3481.....

FOR OTHER MATHS TRICK CLICK HERE

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MACHINE INPUT- PART 2

2013-02-25T08:54:00.002-08:00

In this article we will discuss machine input problems where 2 elements are shifted in one step. To understand this part concept of first part should be clear. ( first part )

The basic concept is similar to the first part ( CLICK HERE ).

How to find that the given machine input is based on 2 element shifting?
look at the last step of given steps.. the arrangement will be in the form of all alphabet and after that all numbers following 1:1 ratio.
if alphabets are on one side and numbers on the other side then here 2 elements are shifted at a time.

How to solve the question?
1. look at the first two steps to determine the pattern of shifting.

WHY 1 and 2 step are very necessary to examine?

first to steps explain the pattern of shifting...

What is this pattern of shifting?

here we have to shift 2 elements ryt?... alphabets and numbers can be arranged in increasing or decreasing order.... but that is not the main concern here......
the main concern is wheather they are moving from left to right or right to left in the steps... examining this is more important......
confused about this part??????? lets take an example..

QUESTION- L , 18 , A , 12 , Q , 93 , U , 32 , T , 46 , W
STEP 1.    A , L , 18 , Q , 93 , U , 32 , T , 46 , W , 12
STEP 2.    L , A , Q , 93 , U , 32 , T , 46 , W , 12 , 18
STEP 3.         Q , L , A , 93 , U , T , 46 , W , 12 , 18 , 32
STEP 4. T , Q , L , A , 93 , U , W , 12 , 18 , 32 , 46
STEP 5.         U , T , Q , L , A , W , 12 , 18 , 32 , 46 , 93
STEP 6.        W , U , T , Q , L    , A , 12 , 18 , 32 , 46 , 93

NOW step one shows that the alphabets are arranged on the left side where as numbers on the right.....

but steps 2 explains that alphabets are arranged in increasing order from LEFT TO RIGHT ( A is being shifted to right side and L comes in its place and so on....)

also the numbers are arranged in increasing order but FROM RIGHT TO LEFT ( 12 is being shifted to the left when 18 comes in 2nd step and so on...)

detecting this part is very important.... after this any question based on this machine input is NOTHING... RYT?

NOTE- marking of the sequence based on this input can be done as explained in the previous post but keep in mind that here you have to mark 2 elements at one time.......

QUESTION - answer the following question based on above machine input...
sequence is- U , 84 , C , 77 , Q , 86 , 13 , B , 11 , S

Q1. what is the 2nd step?
ANS- C , B , U , 84 , 77 , Q , 86 , S , 11 , 13

Q2. what is last but one step? ( most candidate gets confused about this statement.. it simply means 2nd last statement)

ANS-   S , Q , C , B , U , 86 , 11 , 13 , 77 , 84

NOTE- all of you have seen one option as CAN NOT BE DETERMINE .....

when this option is true?

consider the above machine input ( given as example)
now the question is.. base on the above input if the step 2. is A , G , D, F, G ,D ,1 , 2 , 34 , 4 then find step 1......... if such a question comes then the answer will always be CANT BE DETERMINE..
bur step 3 can be determine...
only the step prior to the given step cant be determine....

SUGGESTIONS ARE WELCOME..

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MACHINE INPUT

2013-02-24T10:26:00.001-08:00

MACHINE INPUT

I have come across many candidates having problem with machine input question. so here i am providing a very simple trick for solving the same.....
but before going to trick lets understand what are different series that comes in question paper..
1. alphabetical series.
2. numerical series
3. mixed series
now gone are the days when in bank exam you will given alphabetical and numerical series. now mixed series are given mostly. therefore i will be explaining the mixed series as of now...

Mixed series is prepared in 3 ways...
1. alternate             =one 1 element is shifted/changed/ replaced or whatever you want to say that process.
2. alpha- number = 2 elements are shifted at one time
3. alpha- no. -alpha = 3 elements at a time.

in this article i will be taking first case of mixed series..

first case ALTERNATE arrangement ( 1 element)

QUESTION= G , 93 , Q , 46 , 84 , N , F , 31
STEP 1.       =   31, G , 93 , Q , 46 , 84, N , F
STEP 2.       =   31 , Q, G , 93 , 46 , 84 , N , F
STEP 3.       =   31 , Q , 46 , G , 93 , 84 , N , F
STEP 4        =   31 , Q , 46 , N , G , 93 , 84 , F
STEP 5        =   31 , Q , 46 , N , 84 , G , 93 , F

for solving any machine input first look at the last step. last step clearly shows alternate arrangement of the elements.

as the arrangement is alternate,it implies that only one element is shifted at a time.
now come to the first and 2nd step to find which element was shifted.

once you know this much , you can solve any question based on this input.

the next fault i have seen in candidate is that they start writing the whole input step of the given question based on above given input...
this approach is very time consuming...

by studying the steps we can deduce following conclusions..
1. it is an alternate series.
2. first number is arranged and they are arranged in increasing order.
3. alphabets are arranged in decreasing order.

if you know this then there is no need to write any sequence....
simply mark the step number on the top of the given input just like this...

Now if question is what is the 1st step?
you can directly write the answer from your question ( look for red mark in pic. it has 1 written above 39)

as i have marked element 39 as 1 therefore it sud come on the first place so the answer is..
9,S.H,39,67,A,M,86,59

what is fourth step?
39,S,59,M,67,H,A,86 ( directly from the question... look at last line in the pic)

NOTE- 2 element shifting will be explained in the next article...

PART 2

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THE ULTIMATE TRICK

2013-02-23T09:41:00.000-08:00

friends today i am giving to the the ultimate weapon for quantitative section but you have to practice a loy when, where and how this trick can be used.. .
the trick is very very simple to understand..
NOTE- always consider the value of 9 as 0 (zero).

here it goes for addition..
Q. 879 + 6583 = ? ( 7462)

now every body can solve this question but in bank exam its not only about solving the question, its about solving it in the minimum possible time...

step. 1. simply add the DIGIT in the question till they convert into single digit....

8+7+9 + 6+5+8+3 =

15 ( 9=0) + 22

6 + 4 = 10 or 1

now add all digit of the answer ( 7462= 7+4+6+2= 19 = 10 or 1), it will always be similar to what you have got from the question........

i have taken only 2 numbers in the example you can apply this trick for N numbers ....

so simply mark the OPTION in the exam by calculating the digits. the beauty of this trick is that it applies to subtraction and multiplication also...

Eg. 6587 - 879 = 5708

8 - 6 = 2 ( 20= 2+0= 2)

Eg. multiply 5674 X 345 = if u will solve this by my earlier trick , then also its going to take some time but now it can be solved in fraction of seconds...

5 + 6+7+4 X 3+4+5 = 1957530 ( add it u will get 3 as end result)

4 X 3 = 12 0r 3

The trick can also be applied in combination of addition- subtraction and multiply divide..which i will be telling in next article and trick for solving syllogism.....

NOTE- this trick is very simple therefore all you have to do is know when, where and how to implement it.
this trick can be used in almost all question of math section in bank exam and by now you have got an idea how much time you can save from this trick...
good luck.......
do give your inputs

FOR ALL MATHS TRICK CLICK HERE

FOR INTERVIEW TOPICS CLICK HERE

5 QUESTION IN 1 MINUTE....

2013-02-10T02:07:00.003-08:00

Dear candidates in bank po all of us have seen this type of question-----

there are total 5 question in quant section of bank exam...
usual time for solving the question is 5-7 minutes but with the help of this trick all 5 question can be solved in max. 1 minute

TRICK-----

     SIGN GIVEN IN QUES                          SIGN OF FACTOR WHICH COMES IN THE ANSWER
          1. both sign are positive ( +)                          both sign will be negative

          2.   first sign negative but second is positive             both will be positive

          3. first positive and second negative                          bigger factor with negative and smaller factor with positive sign

          4. both negative                                                           bigger factor positive and smaller factor negative

now lets take the first example given in the pic.. you can solve it in traditional way..
here m solving by TRICK...........

1. factors of M will be 7 and 2. ( no need to calculate it)
2. question has first negative and second positive sign.
3. therefore answer will have positive sign for both the question as told above.
4. second part of same question has N with both negative sign and factors are 2 and 1
5. therefore, answer will have 2 as positive sign ( its bigger factor) and 1 will have negative sign.

NOW u can see that if u remember the above table then this question can be solved verbally...
no need to write nythng... just look at the question and give answer..
hope it helps...
if you want tricks for any particular topic feel free to mention here...

FOR ALL MATHS TRICK CLICK HERE

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MATHS TRICK

2013-02-10T02:01:00.001-08:00

3 DIGIT MULTIPLY

FINAL PART MULTIPLY TRICK

CUBE ROOTS IN 5 SECONDS

compound interest in 20 seconds

5 QESTION IN 1 MINUTE

THE ULTIMATE TRICK

MACHINE INPUT PART 1

MACHINE INPUT PART 2

SQUARE ROOTS

ULTIMATE TRICK PART 2

RATIO

SYLLOGS

PERCENTAGE 1

DI and PERCENTAGE

OTHER BANKING TOPICS

FINAL PART of 3 DIGIT MULTIPLICATION

2013-02-06T01:06:00.000-08:00

FOR FIRST PART CLICK HERE

CONTINUE...
TRICK NUMBER 2. FOR SQUARING 3 DIGITS NUMBERS

USE THE FORMULA....

TRICK NUMBER 3-- for multiplying any 3 digit number..

here you can convert any number into simpler form ask explained above.
the advantage of this trick is that u can use it for 3, 4,5 or any digit number.

TRICK NO. 1 AND 3 ARE MY FAVORITE....

ALL MATH TRICKS CLICK HERE

INTERVIEW PREPARATION CLICK HERE

3 DIGIT MULTIPLICATION TRICKS

2013-02-06T00:58:00.002-08:00

three digit multiplication trick.......... i will explain 3 ways for multiplication of 3 digit number...

TRICK NUMBER 1.   for numbers between 100 and 199

example....              104 x 108
steps.. 1. multlply the last two digit ie 04 and 08= 32
   2. add last two digit of both numbers and than multiply with 1..... i.e 04+ 08= 12 x1 = 12
   3. write 1 as it is....
now the answer of this question is 11232......
see the pic for detail...

NOTE- (at * in the pic.) u can see that in base 200, the number is added and then multiplied by 2 because i have taken base 200. if you take base 300 then u have to multiply it by 3 and so on.....
1.the trick is best used when you know the multiplication of last two digit.
2. if last two digits have zero (0), then it is the best trick.
3. this method can't be used when numbers are from different base like 202 x 303.

ALL MATHS TRICKS

INTERVIEW PREPARATION CLICK HERE

FOR FINAL PART CLICK HERE

CUBE ROOT OF PERFECT CUBE...

2013-02-05T09:49:00.003-08:00

No matter how big a number is.... if it is a perfect cube then you can tell the cube root in 5 seconds......

but you have to remember this chart and cubes from 1 to 9......

cube of 1= 1 ( last digit)
cube of 2= 8 (last digit)
cube of 3= 7 ( 27 but last digit is 7)
cube of 4= 4 ( 64 but last digit is 4 )
cube of 5 = 5 ( 125 last digit is 5)
cube of 6 = 6 ( 256 but last digit is 6)
cube of 7 = 3 ( 343 but last digit is 3)
cube of 8 = 2 ( 512 but last digit is 2)
cube of 9 = 9 ( 729)
as you can i have emphasised on the last digit of every number....
there is nothing to learn in this as you can see that all the have their identity as the cube's last digit except 2, 3, 7 and 8.
if you remember this then volla ......

example. 681472 is a perfect cube..
      and its cube root is 88
explanation
1. divide the number in group of three starting from the back..
681    472
2. now as the end part has 2 as last digit therefore cube root's last digit must be 8. ( as from the chart)
3. now 681 is more than 512 ( cube of 8) but less than 729 ( cube of 9). therefore the cube root for this no. must lies in 80s....
4. now we know the first and the last digit of our cube root i.e 88

example--- consider this 778688

dividing in groups of 3...     778     688
                       as 778 is more than 729( cube of 9) and 688 has last digit as 8 , which is the last digit of cube of 2....
therefore the given number is the perfect cube of 92...

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COMPOUND INTEREST IN 20 SECONDS

2013-02-05T09:28:00.003-08:00

how to find COMPOUND INTEREST FOR 2 YEARS IN MOST SIMPLE WAY...

TRICK FOR 2 YEARS COMPOUNDED ANNUALLY...

suppose u have to find C.I on Rs. 19000 for 2 years at 6% annually..

6x2 . 6 square

12.36

now use the this formula Principal x 12.36 / 100

the answer is Rs.2348.4

TRICK FOR THREE (3) YEARS ANNUALLY..

formula ---

   6 x 3 . 6 x 6 x 3. 6 x 6 x 6
                     18 /108 / 216
                      19.1016 .... ( how this comes..)
explanation -
                      18 /108 / 216
18 / 108+2 / 16
   18+1 / 10 / 16
                      19.1016

NOTE-- there is increase of approx. 4 after 10% in 3 years...
you can find the answer using the traditional formula also but this method will reduce your time consumption to great extent....

ALL MATH TRICK CLICK HERE

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SHARES AND STOCKS.. explained

2013-02-05T04:45:00.003-08:00

lets assume that i have a company ( Reliance mobile) and my company has issued 1000 shares of Rs. 100 each.
you purchased 50 shares of my company by paying Rs. 5000.

this means that you own 50 shares of my company and “stock of Rs.5000” in this company.

In short, when we talk about shares we refer to the number of papers held by us.
When we talk about stocks, we refer to the money value of those papers held by us.
But ultimately, both shares and stocks suggest the same thing: “Equity”. CLICK HERE

Different type of shares

1. Initial public offering- is when any company makes either a fresh issue of securities for the first time. here first time is the most important thing.
2. Rights issue- You launch IPO, get funds from the public, and started a company
After some years you want more money to expand the company, then you have issue additional shares. But under the companies act, you can issue additional shares to the existing shareholders only. This is called “rights issue of shares”
Here, you give notice to the existing shareholders, offer them to buy your new-shares, you cannot offer any other “outsider” to purchase the shares.

NOTE-------- If you do not want “rights issue of shares”, you have to hold a general meeting of shareholders and pass a resolution that “company does not need to offer new shares to the existing shareholders, and these new shares are available for anybody to purchase”

THEN WHAT IS THE IMPORTANCE OF RIGHT ISSUE???

1. The direct use of right issue is generate more money for the business.
2. It is also used to reduce debt to equity ratio.

how to reduce debt to equity ratio?????

i have told earlier that bonds have rating given by credit rating agency. CLICK HERE
credit rating agency, before giving any rating looks into the debt to equity ratio.
the company with high debt to equity ratio means more debt= high interest = lower rating.
therefore its very difficult for such companies to issue shares because of lower rating...

so how can they improve their debt to equity ratio???????????

Simple: offer new equity (shares) to existing shareholders @ a discounted rate. (=Rights issues of shares). You’ve offer it at a discounted rate, else no one would buy it.
example
someone already have 10 shares of my company, if he buy 10 more shares from me (1:1), Each of these shares will have “Worth Rs.100” printed on it but I’ll give it to him for Rs.50 only.
What good does it do to me? in the legal record, for the calculation of Debt Vs Equity =they’ll calculate using Rs.100 face value. Thus my Debt:Equity ratio will go down, and I’ll look good when credit rating agency.

ARTICLE ARCHIVES CLICK HERE

BASEL NORMS...

2013-02-04T20:44:00.001-08:00

Friends let me keep this very simple this article gives only the basic idea related to BASEL NORMS.
STRICTLY SPEAKING this article does not deal into extreme details such as exact numbers of Tier 1 and Tier 2, credit valuation adjustment or Net Stable Funding Ratio.

Why Do we Need BASEL norms?

consider a hypothetical case of punjab national bank...

PNB gave Rs.2000 as loan to some airline company.
PNB gave loan of Rs.5000 crores to Telecom players and their license is cancelled ( as in case of 2G)
What if those telecom players run away without paying back the loan and airline goes broke?
Someone spread rumors that PNB itself is going to collapse
(as it happened in ICICI, Ahmedabad in 2003 in real-life).
Lakhs of middleclass account holders will run to the nearest PNB branch to take out their deposited money .
Overnight entire banking sector will collapse.

NOW COMES THE BASEL AS A BACK UP PLAN FOR BANKS......

It provides detailed guidelines about how much money should a bank keep aside, to deal with such financial crisis.
Even if loan-takers run away without paying, Bank should have money to give back to deposit holders.
More risk the bank takes, more money it has to keep aside in reserve to counter the risk.

How basel protects the deposited amount?

WARNING- THE PROVIDED INFORMATION IS TECHNICALLY INCORRECT. IT IS JUST FOR UNDERSTANDING THE WORKING MECHANISM....

If a Bank loans 1 crore rupee to a company with “B” Credit Rating, it must keep capital worth 20 lakhs aside for crisis and out of that 20 lakhs, Rs. 15 lakhs must in form of Tier 1 Capital and 5 lakhs can be in form of Tier 2.

Tier 1
Easily liquid. For example

currency notes and coins in the bank value
Stocks held by Bank, can be easily sold off in share-market.

Tier 2

Not easily Liquid, for example the building or land owned by the bank.

Already existing complex Monetary policies of Central Banks in each country (example RBI’s CRR, SLR, Repo etc.) make it difficult to uniformly implement BASEL norms.

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BONDS and DEBENTURES

2013-02-04T20:29:00.000-08:00

Bonds and debenture serve the common purpose of debt.
(for bonds click here)
Overall, the principle behind Bonds and Debentures is same: They offer fixed interest rate + principal repaid at the specified date.
Ok then what’s the difference?

first difference: Bonds r issued by a Government and thats the reason risk of default is very less. Other side, Debentures r issued by companies where the risk of default is very high.

Second difference: the different rates of Stamp Duty applied on each of them.

Third difference: The interest rate offered by Debenture is (usually) higher than Government Bonds. Because Government more likely to repay = no need to seduce customers with higher interest rate.

Based on ‘convertibility’ the Debentures are of two types

1.Convertible debentures	They can be converted into shares of the company on the expiry of xyz date.
2.Non-Convertible Debentures	They cannot be converted into shares.

When debenture is converted into shares, it means debt holder becomes an equity holder.
Both debt vs equity have their own advantages and disadvantages. I’ve discussed it in the earlier article ( for bonds click here).

ARTICLE ARCHIVES CLICK HERE

Bonds vs Shares, Debt vs Equity,Gilt Edged securities: Meaning, Explained

2013-02-04T20:10:00.001-08:00

suppose i want to start a factory. what i need for same?
land, labour and loads of money.......
now how can i arrange the money?
Now, There are two ways to arrange money for starting a company or to expand a company. First is Debt and Second Equity.

DEBT- BOND

as the word suggests it is borrowed money. one can borrow money from bank, friends, relatives...

I write on a piece of paper: “To whoever pays me Rs.1000, I’ll pay annual 10% interest rate (Rs.100). And after 5 years, I’ll also repay the principle amount Rs.1000. No “ifs” and “buts”.
This is one type of security paper. We call it “BOND”.
IF you hold my bonds, I’m liable to pay you money no matter what happens. Whether my company actually makes profit or not. I have to keep paying fixed money to you, every year.

there are credit rating companies like CRISIL, S&P, Moody’s etc. They’ll give credit ratings to a bond. (i.e. Am I capable enough to actually pay you?).
Based on that, they give ratings example AA,A, BBB, BB,C,D etc.

what are junk bonds?????

if bonds have rating below C OR D then it will not attract buyers. so in this case issuer will attract buyers by giving high rate of interest say 25%...
that why it is also called as “High Yield Bond”, because you’re getting higher profit.

what is Gilt edged security?

Government also needs finance- at times when tax collection is low and they need some temporary funds.
They issues treasury bonds. RBI sells these treasury bonds on Government’s behalf.
Government bonds have higher credit ratings (AA). So, they don’t need to seduce you, they’ll offer very low rate, say 4%.
Similarly, well known companies with high credit ratings (AA) also issue bonds but pay low rates.
If you don’t like to take risks, you’ll invest in such bonds. These are called ‘gilt-edged securities’.

what is a bearer bond?

Bearer bonds are same as regular bonds, but they don’t have “Holder’s Name” on them. These bearer bonds have coupons attached with them. So, if you don’t want to withdraw the whole money, you can cut a few coupons and sell them to a broker to withdraw partial amount.

No one can keep a track of who withdrew the money, who’s buying, who’s selling Because there are no “names”, addresses or records. Although, in real life, it is hard to find Bearer bonds. Because most of the bonds now, exist in Electronic (DEMAT) format and you’ve to give your pan card number (or other similar personal information in foreign countries) to buy or sell bonds/shares or any similar security papers.

okay enough about borrowing money. lets talk about giving a partenership ( EQUITY)...

EQUITY- I take money from you and in return I offer you partnership. This is called Equity.

Assuming that I need 1 crore rupees to start my company and I’ve 30 lakhs in my savings. So, I write on a piece of paper: “ I’ll give 0.0001% ownership of my company to whoever gives me Rs.1000”.
This is again a type of ‘security-paper’. But since I’m sharing a part of ownership with you, in crude terms, we’ll call it “Share”.
Then I print 10,000 such papers. What’s the value of these papers?
And since I already have Rs.30 lakhs, I can purchase 3000 shares. (because 3000 papers x Rs. 1000 each = 30 lakhs)
So out of the Total 10,000 shares that I printed, I will own 3,000 shares, so percentage wise I own 30% of this company’s equity.

Debt vs Equity : good and Bad things

In real life, companies don’t rely on single source to finance their adventure. They’ll arrange part of the cash from Debt (Borrowing) and part of the cash by issuing IPOs (Equity).
Each has its own advantage and disadvantage. Let’s check

Good things: bonds vs shares

Debt (Bond)	Equity (IPO/Shares)
I have complete ownership and control over the company. I’m accountable to no body. I don’t have to ‘share’ my profit with anyone. I can claim income tax deduction for paying the loan. It require less paperwork and time to borrow from bank / friend than via sharemarket (SEBI permission, board of directors etc)	If the company makes loss, I don’t have to share any money with the shareholder, just like Kingfisher. So there is no ‘regular’ interest payment, as we do in the loan. Meaning I’ve less tension compared to bank loan/ bonds.

Bad things: bonds vs shares

Debt (Bond)	Equity (IPO/Shares)
Even if I don’t make profit, I’ve to pay interest rate, because basically this is a ‘loan’ just like home loan or car loan. Whether you earn or not, you’ve to pay the EMI. I may have to mortgage something (machinery, building) to get the loan. So in case I default on the loan, the bank/financer can take it away from me.	I don’t get complete ownership and control over the company. I’ve to constitute a board of directors, hold general meetings of shareholders, I’m accountable to them. The board of directors can throw me out of CEO job, if I donot deliver results. It requires heavy paperwork and time to initiate IPO, sharemarket thing (SEBI permission, underwriting etc)

ARTICLE ARHIVES CLICK HERE

Difference between FII and FDI

2013-02-04T02:52:00.002-08:00

In crude terms:

FII= when foreign-players invest in shares and stockmarket. CLICK HERE FOR FII

FDI= when foreign companies invest in India for manufacturing, production, sales etc. by themselves (100%) or by partnering with some Indian firms.

1. FII can enter the stock market easily and also withdraw from it easily. But FDI cannot enter and exit that easily.
2. Foreign Direct Investment targets a specific enterprise. The FII increasing capital availability in general.
3. The Foreign Direct Investment is considered to be more stable than Foreign Institutional Investor

4. While the FDI flows into the primary market, the FII flows into secondary market.

5. While FIIs are short-term investments, the FDI’s are long term.

FOR ARTICLE ARCHIVES CLICK HERE

FII and QFI

2013-02-04T02:33:00.003-08:00

Foreign institutional investor-

any foreign player can invest money in stock market. The foreigners have to open a sub account with already registered FII ( eg. Maxwell Assets Manager, BNP PARIBAS, MORGAN STANLEY) with the SEBI.

invest a minimum net worth of $50 million (about Rs. 260 crore) to get a license from SEBI.

note- investment under FII are very vulnerable as a slight change in the market result in the out flow of investment from the country and datsy it is called as HOT MONEY- was responsible for 1997 Asian financial crisis.

QUALIFIED FOREIGN INVESTORS

It means a foreign individual, group or foreign firm can directly invest in Indian stock-market like any normal Indian citizen, without requiring the sub-account with FII. This should bring in some more investors, who’re interested in investing in India but feel turned off because of this sub-account and strict High Net-worth rules.

Requirements for QFI

1. DEMAT account
2.trade account with a depository participants.

what is demat account?

When you purchase shares, you don’t get paper certificates, but those shares get electronically transferred to your demat account in the Depositary. Meaning your shares are not in physical paper (material) form but electronic format. De-materializied= De-mat. No fear of theft, misplacement, delay in transfer etc.

what is depository?

A Depository is like a bank locker where securities (shares) are held in electronic (dematerialised) form.
In India, there are only two Depositories -National Securities Depositories Limited (NSDL) and Central Depository Services Limited (CDSL).

What is Depository Participants (DP)?

DP’s are like bank branches where shares in physical (paper) form need are deposited for converting them in electronic (demat) form and email it to the Depositary.
Examples of Depository Participants (DP) :ICICI, SBI, HDFC etc. You’ve to open a Demat Account with any one DP.

important points

QFI is an individual, group or association resident in a foreign country that adheres to anti-money laundering and anti-terrorist financing guidelines as defined by the financial action task force (FATF), a multi-lateral body.
The QFIs do not include FII/sub-accounts.
QFIs can own up to 5% of Indian companies while their cumulative investments are capped at 10%. These limits are over and above the FII and NRI investment ceilings prescribed under the portfolio investment route for foreign investment in India
The QFIs shall be allowed to invest through the SEBI-registered Qualified Depository Participant (DP), with the QFI required to open only one demat account and a trading account with any of the qualified DP and make purchase and sale of equities (shares) through that DP only.

for article archives click here

Financial inclusion

2013-01-31T21:06:00.000-08:00

financial inclusion simply means

Give every poor man a bank account. And help him get a loan from banks.

Financial inclusion involves

Give formal banking services to poor people in urban & rural areas.
Promote habit of money-savings, insurance, pension-investment among poor-people.
Help them get loans at reasonable rates from normal banks. So they don’t become victims in the hands of local moneylender cum thugs.

Three important initiatives taken by RBI for financial inclusion:

1969	Lead banking scheme (LBS). RBI asked every bank to choose a particular district. That Bank will be responsible for promoting banking services and financial literacy, in that district.(=financial inclusion).
2005	No frills account. Poor people can open bank accounts with very low balance e.g. Rs.5 only. We’ve already discussed that in earlier articles:CLICK HERE on 10th august 2012 no frills replaced by basic saving bank account CLICK HERE
2006	Business Correspondents (BC) system. Discussed in this article

Now so far only 55% indians have banking relationship in any form.
if financial inclusion is all about opening bank accounts in rural areas then whats the problem, just open the damn branches in every area...... but that is not possible... why?????

Administrative costs will be high= Building rent, telephone, electricity, staff salary, security guards.
On the other hand volume of business is very “low” in village areas=amount of money deposited, loans taken.
Means there is No profit. Actually it’ll lead to heavy losses.

on the other hand villagers cant afford to travel 20 kms to deposit Rs. 500 in his account by wasting his full day as the branches are in semi urban areas......

therefore to counter these problem BUSINESS CORRESPONDENT were introduced...

BUSINESS CORRESPONDENT

Business correspondents are bank representatives. they personally goes to the area allotted to them and carry out banking.
They help villagers to open bank accounts.
They help villagers in banking transactions. (deposit money, take money out of savings account, loans etc.)
The Business Correspondent carries a mobile device.
The villager gives his thumb impression or electronic signature, and get the money.
Business Correspondents get commission from bank for every new account opened, every transection made via them, every loan-application processed etc.

Functions of BC-----

Create awareness about savings.
Give advice to villagers, about how to save/invest money and how to arrange/manage loans.
Collect loan applications, forward them to bank.
Preliminary processing of loan applications for example: verification of person’s identity, home-address etc.
Help the Self Help Groups (SHG), to get loans.
Help the bank to collect EMIs and recover loan money.

SWABHIMAN

Initiative by the Finance Ministry + Indian Banks’ Association
launched in 2011
To bridge economic gap between rural and urban India.

Objectives

Make banking facilities available to every habitat with a population >2000 (by March 2012.)

Banks will provide basic services like deposits, withdrawal, Kisan Credit Card (KCCs) etc via Business Correspondents (BCs) also known as Bank Saathi.
Banks will also working together with the Unique Identification Authority of India (UIDAI) for opening new bank accounts.
Government will send subsidies and social security benefits (pension etc.) directly to beneficiary’s account.
Beneficiary can withdraw the money from the Business Correspondents (BCs) in their village itself.
Government has provided 500 million rupees to banks for taking these initiatives.(e.g. paying Commissions to Bank Saathi, their training cost, doing paperwork with UID.)

KISAN CREDIT CARD

KCC is a credit facility given to the farmers based on the total yield capacity of their agriculture land.
the money withdrawn is to be paid back in 1 year attracting 7% interest rate. but if the individual pays the credit in time then 3% of interest is paid back to his amount. but this facility is available only for those KCC which has a annual limit of less than or upto 3 lakh.

general purpose credit card is given to marginal farmers and poor with a limit of Rs. 15000.

for article archive click here

BASIC SAVING BANK ACCOUNT

2013-01-31T06:59:00.001-08:00

Basic saving bank account has taken place of no frills account... but why?
reasons .......
1. social stigma- person having no frill a/c were consider as poor and no one wants to have any relationship.
2. no cheque book and atm card.

benefits of basic saving bank account( bsba)

No limit on the number of deposits that can be made in a month
Maximum 4 withdrawals in a month , including through ATM's
No minimum balance requirement
cheque book and atm card is provided.

restriction of bsba
1. deposited money in 1 year should not be more than 1 lakh. ( eg. if u deposited Rs. 10000 and withdraw Rs. 5000 and next day again u deposit Rs. 10000. then ur deposited money will be Rs. 20000 and not 15000).
2. maximum withdraw limit for whole month is 10000.
3. balance in account should not exceed Rs. 50000 at any time.

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