TOPIC OF THE DAY

Government's Work or not

2018-12-17T10:06:00.001+05:30

Yesterday night, I had seen a old lady with fractured leg and broken breath in Delhi. However it is not first time, what I have seen. But some time we watch, which are not normal. This the case, we don't want to see ever. The old lady can not stood up due to her broken breath.
I want to know that whose duty is this? This the one case, but I know there are many case worsen than this. But who have to look after them. Shouldn't govt have to look after them?
Or govt also want, mango people to look after them. Isn't the government duty. It should be.
Govt have to shame on themselves. Or govt wait for someone to come forward and take responsibility.
I don't know what is the government plans, but if it is in his plan then it is not showing in reality and if it is not in his plan then show some respect to people and make foolproof plan for them. So nobody, who are uncapabale to do any work for his /her livelihood, lives like slaves.
Government want to go to the moon and other stars to setisfy his ego with other countries, but have no funds for people like this lady. Shame!
I am hoping for best for everyone.

आज का जीवन एक बच्चे की नज़र से

2014-01-14T19:50:00.000+05:30

प्राथमिक पाठशाला की एक शिक्षिका ने अपने छात्रों को एक निबंध लिखने को कहा. विषय था "भगवान से आप क्या बनने का वरदान मांगेंगे" इस निबंध ने उस क्लास टीचर को इतना भावुक कर दिया कि रोते-रोते उस निबंध को लेकर वह घर आ गयी. पति ने रोने का कारण पूछा तो उसने जवाब दिया इसे पढ़ें, यह मेरे छात्रों में से एक ने यह निबंध लिखा है..

निबंध कुछ इस प्रकार था:-

हे भगवान, मुझे एक टीवी बना दो क्योंकि तब मैं अपने परिवार में ख़ास जगह ले पाऊंगा और बिना रूकावट या सवालों के मुझे ध्यान से सुना व देखा जायेगा. जब मुझे कुछ होगा तब टीवी खराब की खलबली पूरे परिवार में सबको होगी और मुझे जल्द से जल्द सब ठीक हालत में देखने के लिए लालायित रहेंगे. वैसे मम्मी पापा के पास स्कूल और ऑफिस में बिलकुल टाइम नहीं है लेकिन मैं जब अस्वस्थ्य रहूँगा तब मम्मी का चपरासी और पापा के ऑफिस का स्टाफ मुझे सुधरवाने के लिए दौड़ कर आएगा. दादा का पापा के पास कई बार फोन चला जायेगा कि टीवी जल्दी सुधरवा दो दादी का फेवरेट सीरियल आने वाला हे. मेरी दीदी भी मेरे साथ रहने के लिए के लिए हमेशा सबसे लडती रहेगी. पापा जब भी ऑफिस से थक कर आएँगे मेरे साथ ही अपना समय गुजारेंगे. मुझे लगता है कि परिवार का हर सदस्य कुछ न कुछ समय मेरे साथ अवश्य गुजारना चाहेगा मैं सबकी आँखों में कभी ख़ुशी के तो कभी गम के आंसू देख पाऊंगा. आज मैं "स्कूल का बच्चा" मशीन बन गया हूँ. स्कूल में पढ़ाई घर में होमवर्क और ट्यूशन पे ट्यूशन ना तो मैं खेल पाता हूँ न ही पिकनिक जा पाता हूँ इसलिए भगवान मैं सिर्फ एक टीवी की तरह रहना चाहता हूँ, कम से कम रोज़ मैं अपने परिवार के सभी सदस्यों के साथ अपना बेशकीमती समय तो गुजार पाऊंगा.

पति ने पूरा निबंध ध्यान से पढ़ा और अपनी राय जाहिर की. हे भगवान ! कितने जल्लाद होंगे इस गरीब बच्चे के माता पिता !

पत्नी ने पति को करुण आँखों से देखा और कहा,...... यह निबंध हमारे बेटे ने लिखा है !!

Sony Xperia T2 Ultra :Specification

2014-01-14T19:27:00.000+05:30

GENERAL	2G Network	GSM 850 / 900 / 1800 / 1900 - all versions
	3G Network	HSDPA 850 / 900 / 2100 - D5303
		HSDPA 850 / 900 / 1700 / 1900 / 2100 - D5306
	4G Network	LTE 800 / 850 / 900 / 1800 / 2100 / 2600 - D5303
		LTE 700 / 1700 / 1900 / 2100 /2600 - D5306
	SIM	Micro-SIM
	Announced	2014, January
	Status	Coming soon

BODY	Dimensions	165.2 x 83.8 x 7.7 mm (6.50 x 3.30 x 0.30 in)
BODY	Weight	171.7 g (D5303)/ 172.4 g (D5306) (6.07 oz)

DISPLAY	Type	IPS LCD capacitive touchscreen, 16M colors
	Size	720 x 1280 pixels, 6.0 inches (~245 ppi pixel density)
	Multitouch	Yes, up to 10 fingers
		- Triluminos display - Mobile BRAVIA engine 2

SOUND	Alert types	Vibration; MP3 ringtones
	Loudspeaker	Yes
	3.5mm jack	Yes

MEMORY	Card slot	microSD, up to 32 GB
MEMORY	Internal	8 GB, 1 GB RAM

DATA	GPRS	Up to 107 kbps
	EDGE	Up to 296 kbps
	Speed	HSDPA, 42 Mbps; HSUPA, 5.76 Mbps; LTE, Cat4, 50 Mbps UL, 150 Mbps DL
	WLAN	Wi-Fi 802.11 a/b/g/n, dual-band, Wi-Fi Direct, DLNA, Wi-Fi hotspot
	Bluetooth	Yes, v4.0 with A2DP
	NFC	Yes
	USB	Yes, microUSB v2.0

CAMERA	Primary	13 MP, 4128 x 3096 pixels, autofocus, LED flash
	Features	Geo-tagging, touch focus, face detection, image stabilization, HDR, sweep panorama
	Video	Yes, 1080p@30fps, video stabilization, HDR
	Secondary	Yes, 1.1 MP, 720p@30fps

FEATURES	OS	Android OS, v4.3 (Jelly Bean)
	Chipset	Qualcomm MSM8928
	CPU	Quad-core 1.4 GHz
	GPU	Adreno 305
	Sensors	Accelerometer, gyro, proximity, compass
	Messaging	SMS (threaded view), MMS, Email, IM, Push Email
	Browser	HTML5
	Radio	FM radio with RDS
	GPS	Yes, with A-GPS support and GLONASS
	Java	Yes, via Java MIDP emulator
	Colors	Black, White, Purple
		- ANT+ support - SNS integration - Active noise cancellation with dedicated mic - Xvid/MP4/H.263/H.264 player - MP3/eAAC+/WMA/WAV/Flac player - Document viewer - Photo viewer/editor - Voice memo/dial - Predictive text input

BATTERY		Non-removable Li-Ion 3000 mAh battery
	Stand-by	Up to 1071 h (2G) / Up to 1046 h (3G)
	Talk time	Up to 14 h (2G) / Up to 24 h (3G)
	Music play	Up to 93 h

NEW MARUTI SMALL CAR - A:WIND SPOTTED

2014-01-12T20:45:00.000+05:30

Maruti's A-Star replacement have surfaced for the first time.

Maruti may be good at keeping its cars under wraps but it is getting increasingly difficult. Pictures of the production version of the A:Wind concept have been posted by Motoroids. Alert snapper Dhananjay caught the all-new hatchback in what looks like an advertising campaign photoshoot.

The Suzuki A:Wind Concept displayed at the 2013 Thailand Motor show was a hatchback waiting to happen for India since small cars from the Suzuki stable are developed keeping the huge Indian market in mind. We expect Maruti to unveil this highly anticipated car at the upcoming Auto Expo. Codenamed YL7, the hatchback could carry the Celerio moniker in production form and ditch the A:Wind tag from the concept or the present A-Star name since this name hasn’t been successful in India.

In the not-so-clear images, the form of the production car can be seen to be retained in the whole. The front end styling has been toned down from the bold concept keeping its mass market positioning. The headlights get turn indicators on top and there’s plenty of chrome on the grille to give it a premium look. Round fog lamps have been integrated into bumper instead of separate housings for them.

Under the hood, we expect the same 1.0-litre K-series 3-cylinder engine that currently powers the A-Star, Wagon R and Alto K10. It has 67 PS of power on tap and 89 Nm of torque. In concept form, the car measures 3,600mm x 1,600mm x 1,540mm (LxWxH) and has a wheelbase of 2,425mm. It is 100mm longer and 80mm taller than the A-Star. It also has 65mm more between the wheels. This translates to increased legroom and headroom, a rectified drawback from the A-Star.

There is no update yet on the 2-cylinder diesel engine Maruti is developing, but we expect to know more on it at the Auto Expo. Maruti wants to reduce dependence on Fiat’s Multijet engine and this engine is touted to expand their diesel line-up in the Maruti stable including this new small car.

NEW SAMSUNG GALAXY NOT 3 LITE

2014-01-12T20:23:00.000+05:30

Though Samsung unveiled its new line of professional-grade tablets at the Consumer Electronics Show this year, it did not showcase any smartphones. However, the launch of the rumoured Galaxy Note 3 Lite seems imminent, with several photos and specifications of the model leaking online.

Technology website SamMobile has spilled the beans on the features of the upcoming model, touted as the smaller version of the Galaxy Note 3 phablet. The images show that the handset will bear the same look as Samsung's current top-end phablet and will have similar faux-leather back panel. However, the design of the camera module is a little different.

The report says that the Samsung Galaxy Note 3 Lite will have a 5.5-inch HD (720p) SuperAMOLED display, much like the Galaxy Note 2. It is said to run on a six-core Exynos 5260 chipset with Heterogenous Multiprocessing Technology (HMP), allowing all six cores to operate simultaneously. The model will be launched in two variants - one that operates only on 3G networks and one that works on 3G as well as 4G networks.

Other key features of the model include 2GB RAM, 8MP rear camera, 2.1MP front camera, LED flash, 16GB internal storage, microSD support and 3,100mAh battery. The phone will run on Android 4.3 (Jelly Bean) upon launch, though the final software build may differ.

Galaxy Note 3 Lite will also come with the S Pen stylus and have all the related stylus features, such as Screen Write, Scrapbook, Pen Window etc. Connectivity options of the phone Lite include Bluetooth 4.0, microUSB, NFC, Wi-Fi and infrared.

In Antutu benchmark test, Samsung Galaxy Note 3 Lite scores higher than Galaxy S4, but lower than the Note 3.

It is expected that Samsung will unveil the Galaxy Note 3 Lite at the Mobile World Congress in February.

AAP-AAM ADMI PARTY

2014-01-02T22:44:00.000+05:30

What is AAP?
AAP is the newly constituted name of party or group of socialists who groped together to make government in Delhi(first). The party's head is Mr. Arvind Kejriwal, Who is now Chief Minister of Delhi state Government.
Why AAP?
Mr. Anna Hazare, Mr. Arvind Kejriwal, Ms. Kiran Bedi and some other social activist fight against corruption by Gandhian way, like 'ansan(fast)' for many days, public meetings etc. But between these activists Mr. Arvind Kejriwal and some others thought that this is not the way to fight against corruption, so they formed a party headed by Mr Kejriwal, named AAP(AAM ADMI PARTY). A party for aam admi(general public).

AAP in Their Own Words
For the past two years millions of common Indians came out on streets to fight against the biggest evil in our country today - corruption. This people's anti-corruption movement has exposed the ugly and greedy face of our politicians. No political party in India today works for the common man's needs. The Janlokpal Movement was a call to all the politicians of India to listen to the common man's plea. For almost 2 years we tried every single way available to plead our cause to the government - peaceful protesting, courting arrest, indefinite fasting several rounds of negotiations with the ruling government - we tried everything possible to convince the government to form a strong anti- corruption law. But despite the huge wave of public support in favour of a strong anti-corruption law, all political parties cheated the people of India and deliberately sabotaged the Janlokpal Bill. The time for peaceful fasts and protests is gone. This is the time for action. Since most political parties are corrupt, greedy and thick skinned, it's time to bring political power back into the people's hands. We are not saying that every single politician is corrupt and greedy. There are many good intentioned people in politics today who want to work honestly for the people of India. But the current system of polity does not allow honest politicians to function. We are also not claiming that every single person who joins our party will be hundred percent honest. We are saying that it is the system that has become very corrupt and needs to be changed immediately. Our aim in entering politics is not to come to power; we have entered politics to change the current corrupt and self-serving system of politics forever. So that no matter who comes to power in the future, the system is strong enough to withstand corruption at any level of governance.

UP Board Intermediate Result 2012 Declared

2012-06-05T13:57:00.000+05:30

The Result of UP Board Intermediate Declared, Total passing percentage is 89.90. In that result girls have better pass percentage(95.52%)and boys have 84.73% passing percentage.
Abhilasha and Apporva jointly topped the UP Board Examination with 96.20% marks. Both the girls from MAHARANI LAXMIBAI MEMORIAL INTER COLLEGE, BARABANKI and Ashutosh singh got the second place with 94.20% marks. He is from SKD INTER COLLEGE, LUCKNOW.
All boys and girls can view their result from link http://upmsp.nic.in/
or http://upresults.nic.in/
and share your result experience here.

Loans and Advances

2011-12-06T20:19:00.001+05:30

(i) The definition of banking in section 5(b) of Banking Regulation Act indicates that acceptance of deposits may be for lending and investment. Thus lending or making of loans and advances is a core business of a banking company. Lending may be for short term or long term, on secured or unsecured basis and for different purpose.
(ii) Regulation of Loans and Advances:
(a) The reserve is empowered under 21 of the Banking Regulation Act to issue directions to control advances by banking companies. Apart from this, the general powers to give directions under Section 35A are also available for regulation of loans and advances.Such directions may be issued to banking companies generally or to any particular company. The reserve Bank may determine the policy in relation to advance and issue directions when it is satisfied that it is necessary to give directions

(i) In public interest (ii) In the interest of depositors
(iii) In the interest of banking policy
(b) The direction given by Reserve Bank are binding on banking companies, and may be on one or more of the following matters:
(i) Purpose for which advances may or may not be made.
(ii) Margins, to be maintained in respect of secured advances.
(iii) Maximum amount of advances or other financial accommodation which may be made to any company, firm, association of persons or individual. The policy on these matters may be specified having regard to the paid-up capital, reserves and deposits of the Banking company and other relevant consideration.
(iv) Maximum amount up to which guarantees may be given by a banking company on behalf of any company, form, association of persons or individual. In this case, also the paid-up capital, reserves, deposits and other relevant considerations have to be taken in to account for determining the maximum amount.
(v) Rate of interest and other terms and conditions on which advances and other financial accommodation may be made or guarantees may be given.
(iii) Restriction on loans and advances: Section 20 of the Banking Regulation Act impose certain restriction on loans and advances. accordingly no banking company shall grant loans or advances on the security of its own shares. Further, a banking company, is prohibited from entering into any commitment for granting any loans or advances to or on behalf of any of its directors. The prohibition also applies to loans and advances to: (a) firms in which any director is interested as a partner, manager, employee or guarantor, and
(b) any company (other than a company register under Section 25 of the companies Act) in which a director of a banking company holds substantial interest as defined in Section 5(ne) of the Act or of which he is director, manager, managing agent, employee or guarantor.
If the director(including member of any board for managing or advising the bank regarding management) of a banking company is a partner or guarantor of any individual, loans and advances to such individual are also barred. If there is any doubt or dispute as to whether a transaction is a loan or advance, the decision of the Reserve Bank in the matter shall be final.
(iv) Restriction on power to remit debit: For remitting any debt to its directors, a banking company requires prior permission of the Reserve Bank under Section 20A of the Banking Regulation Act. Permission is also required for remission of loans to:
(a) any firm or company in which a director is interested as director, partner, managing agent, or
(b) any individual for whom a director is partner or guarantor. Any remission made in contravention of Section 20 is void and will have no effect.

Nomination

2011-12-06T19:35:00.001+05:30

(i) Repayment of Deposits: Section 45Z of the Banking Regulation Act provides that a depositor or depositors of a banking company may nominate one person in the prescribed manner as nominee to whom the deposit may be returned in the event of the death of the sole depositors or depositors. Unless the nomination is varied or cancelled, the nominee is entitled to all the rights of the depositor/s in the event of death of the depositor/s. In the case of minor nominee, there is also a provision to appoint a person to receive the deposit on behalf of the minor. Rule 2 of the banking companies Rules, 1985 provides for the procedure and forms for making nomination in respect of deposits with commercial banks.

(ii) Articles of Safe Custody and Safety Lockers: There are also provisions in the Banking Regulation Act for nomination in respect of articles kept in safe custody with banks and safety lockers. Sections 45ZC and 45ZE provides that any person who leaves any article in safe custody and in safety lockers respectively with a banking company, may nominate one person as nominee to receive the article in the event of death of the person. The nomination has to be in prescribed manner and on return of the article kept in safe custody or removal of contents of locker by nominees as provided, the bank gets a valid discharge. Rules 3 and 4 of the banking companies Rules, 1985 deal with the form and procedure applicable to article in safe custody and safety lockers respectively.

Acceptance of Deposits in Banking

2011-12-02T20:36:00.001+05:30

(i) The essence of banking is the acceptance of deposits from the public withdrawal by cheque.
(ii) Types of Deposits: Banks accepts different types of deposits, both time and demand deposits, from the public. While time deposits, like fixed deposits or recurring deposits are repayable after an agreed period. Demand deposits, like deposits in current account and savings bank accounts, are repayable on demand, subject to term and conditions of the deposits. The period of deposit and rate of interest applicable to the deposit are matter to be agreed between the depositor and the bank under the terms of deposit, subject to any directions given by the RBI in this regard.

(iii) Regulation of acceptance of deposits: The Banking Regulation Act does not contain any specific provisions for regulation of acceptance of deposits of banks. However, Section 35A which authorize The RBI to give directions is wide enough to cover acceptance of deposits. The Reserve Bank of India Issues the directions from time to time regulating the rates of interest applicable to deposits. The direction may either fix the rates or specify the minimum/maximum rate of interest on savings deposits and time deposits for various periods as also for special categories of deposits like senior citizen, NRI deposit. If no rates are specified by RBI then the banks are free to decide their rate accordingly.
(iv) Return on unclaimed deposits: Bank have to file a return every year on their unclaimed deposits under Section 26 of the Banking Regulation Act.The return has to be filed within thirty days of each calender year in the form and manner prescribed and should cover all deposits not operated for ten years. In the case of fixed deposits the period of ten years starts from the expiry of the period of the deposit.

Power to Issue Directions In Banking

2011-12-02T19:49:00.001+05:30

(i) The Banking Regulation: This Act authorised the Reserve Bank of India to issue direction to bank under Sections 21 and 35A. While Section 21 gives the power to regulate advances by banking companies, Section 35A gives wide powers generally to regulate banking companies. The Reserve Bank of India has been issuing directions from time to time under section 21 regulating rates of interest and other term and conditions of acceptance of deposits and making of loans and advances.
(ii) Nature of Directions: The direction issued by RBI in exercise of powers under Section 21 and 35A of the BR Act, being statutory direction, are binding on banks, even if they do not specially refer to any statutory
provision. The directions are addressed to banks only and not to customers or the public.Any action of banks against the Reserve Bank's instructions would not invalidate the contract with third parties but would render the banks liable to prosecution. The effect of directions will be prospective and not retrospective in the absence of any statutory providing for retrospective operation of direction.
(iii) Bonafides: The power of Reserve Bank to issue directions have to be exercised with bonafide intentions, as held by the Gujarat High Court in RBI vs Harisidh Co-op. Bank Ltd. In that case the court considered the power of RBI to issue directions for superseding the board of a Co-operative bank for securing its proper management and upheld the action taken by the Reserve Bank on the finding that it was without mala fide.
(iv) Caution and Advice: Apart from giving directions, the RBI may also caution or give advice to banking companies. Section 36 of the Banking Regulation Act provides that the RBI may caution or prohibit banking companies generally or any banking company in particular against any transaction or class of transaction.

Bankers Right of Set-off

2011-11-09T21:59:00.001+05:30

Set-off means- that the bank can adjust the credit balance in a customer's account against a debit balance in another account maintained by the same customer.
In an on going, situation, the right of set-off can be exercised by a banker- by serving a reasonable notice on the customer.
The right of set-off can be exercised by the banker only when the relationship between the customer and the banker is that of- Debtor and Creditor.
The banker can exercised the right of set-off only in respect of- debts due and determined.
The following condition are required to be fulfilled before a banker can exercise the right of set-off- (a)The debt must be a sum certain and due immediately, (b) The debt must be due by and to the same parties and the in the same right, (c) There should be no agreement to the contrary.
The right to set-off account arise immediately in the following cases- (a) On the death, metal incapacity or insolvency of a customer, (b) On the insolvency of a firm, or on the liquidation of a company, (c) On the receipt of garnishee order.
The right of st-off is available to the banker only in respect of- credit balance held in a customer's account.
In case of time barred debt- the bank can exercise the right of set-off provided the debts are due in the same sight.
Money held in a fixed deposit account may be set-off against an overdraft allowed to the same customer- only after the fixed deposit has matured for payment.
For exercising the right of set-off- no document is required to be obtained from the customer.

Banker's Lien

2011-11-09T21:27:00.000+05:30

A lien is the right to- retain goods or securities belonging to a debtor until he discharged a debt to the retainer thereof.
A lien may be- Particular or/and General.
Banker's lien is a general lien and is specially conferred by- Section 171 of the Indian Contract Act, 1872.
Banker's general is available in respect of- all securities deposited with him as banker by the customer, unless there is contract inconsistent with lien.
The right of lien is available to the banker only when the goods/securities have been given to him as:- Bailee.
The right of lien is available to the banker- even in respect of time-barred debts.
The banker's lien is- an implied pledge.
Banker's lien extends to - cheques and bill of exchange payable to customer, depository receipts and certificates of deposits of money issued to the customer, and insurance policies share certificates and debentures standing in the name of the customer.
The title deeds of lad owned by the customer, Money paid into the bank for the credit of a deposit account, Credit balance in a deposit account- are not covered under the banker's lien.
Bankers can exercise general lien in respect of- Goods and Securities.
Securities received for sale, Securities deposited upon a particular trust, although trust fails, Securities left in banker's hands, after an advance against them has been declined,- may not be subjected to banker's general lien.

BANKER AND CUSTOMER RELATIONSHIP

2011-11-09T20:35:00.000+05:30

When a Person maintain a deposit account with the bank, principal relationship between the two is one of- Debtor and Creditor.
Upon the banker's allowing an overdraft to customer in his current account, the relationship between the two will be that of- Creditor and Debtor.
While collecting cheques/bills etc. for a customer, the bank act as- An agent of the customer.
When a customer deposits a sealed box with the bank for safe custody, the relationship between the two is that of- Bailor and Bailee.
When a customer takes a locker in the Bank, the relationship between the bank and the customer is one of- Lessor and Lessee.
When a customer gives standing instruction to the bank for remitting a specified sum of money every month towards payment of his rent to a person, the bank act as-an agent of the customer.
In case the securities or documents are deposited by a customer for purpose of safe custody the banker deals with them according to the instructions of the customer, the position of the banker is that of a- trustee.
When a banker undertakes to pay bills domiciled on him by his customer, the relationship between the two is that of- Principal and Agent.

BANKING REGULATION ACT

2011-11-07T18:59:00.001+05:30

The Banking Regulation Act, 1949 does not at all apply to- Primary agriculture credit societies and co-operative land mortgage banks.
Nothing contain in the Banking Regulation Act, 1949 (except section 34-A) applies to- Industrial Development Bank of India.
Section 11 of the Banking Regulation Act, 1949 stipulates that if a foreign bank wishes to carry on business in India at a place other than Bombay and Calcutta, the aggregate value of its paid-up capital and reserves shall not be less than- Rs. 15,00,000.00.
A foreign banking company having a place of business in the city of Bombay or Calcutta or both, must have an aggregate value of its paid up capital and reserves of amount not less than- Rs. 20,00,000.00.
In terms of the explanation (ii)(b) to section 35 of the Banking Regulation Act, 1949, inspection of branches of Indian banks situated abroad is to be carried out by- Reserve Bank of India.
No bank incorporated in India can open an office (place of business) outside India without obtaining prior permission of- Reserve Bank of India.
Section 16 of the banking Regulation Act, 1949 prohibits a person- to be appointed as director of more than one banking company.
Section 36AD of the Banking Regulation Act, 1949 lays down that no person shall- (i)obstruct any person from lawfully entering or leaving any office or any place of business of a banking company or from carrying on any business there, (ii) hold within the office of place of business of any banking company, any demonstration which is violent or which prevent, or is calculated to prevent, the transaction of normal business by the banking company, (iii) and act in any manner calculated to undermine the confidence of the depositors in the banking company.
Section 26 of the Banking Regulation Act, 1949 requires every banking company to submit an annual return to the Reserve Bank of India in respect of- all account in India which have not been operated upon for ten years.
In terms of section 29 of the Banking Regulation Act, 1949, every banking company is required to prepare its final account i.e., Profit and Loss Account and Balance Sheet in the forms prescribed in- the Third schedule to the Banking Regulation Act, 1949.
In terms of section 12 of the Banking Regulation Act, 1949, the minimum ratio between authorised, subscribed and paid-up capital of a banking company should be- 4 : 2 : 1.
Section 25 of the Banking regulation Act, 1949 lays down that the assets in India of every banking company at the close of business on the last Friday of every quarter shall- not be less than 75% of its demand and time liabilities in India.
As per section 9 of the banking regulation act, 1949, no banking company shall hold any immovable property howsoever acquired, except such a is required for its own use, any period exceeding- seven(7) years.
Under section 17 of Banking Regulation Act, 1949 every banking company incorporated in India is required to transfer each year to a reserve fund a sum equivalent to not less than- 20% of profit before dividends.
Section 45 to the Banking Companies Act (now known as the Banking regulation Act), empowering the Government of India, on the recommendation of the Reserve Bank, to compulsorily amalgamate weak banks with string ones, was inserted ones, was inserted in the year 1960 following the failures of- The Laxmi bank and the Palai Central Bank.
Under section 23(1) of the banking regulation act, 1949, a banking company is exempted from obtaining prior permission of Reserve Bank of India for- change of premises within the same city, town, village.
Section 21 of the Banking Regulation Act, 1949 empowers Reserve Bank of India to- control advances by banking companies.
"Notwithstanding anything contained in the Usurious Loans Act, 1918 (10 of 1918) or any other law relating to indebtedness in force in any state, a transaction between company and its debtor shall not be reopened by any Court on the ground that the rate of interest charges by the banking company in respect of such transaction is excessive." This provision is contained in- Section 21A of the Banking Regulation Act, 1949.
In terms of section 6(1) of the Banking Regulation Act, 1949, a banking company may, in addition of the business of banking, engage in any one or more of the following forms of business- (i) acting as agents for any Government or local authority or any other person or persons,(ii) contracting for public and private loans and negotiating and issuing the same, (iii) and undertaking and executing trust.
Section 14A(1) of the banking regulation act, 1949 prohibits a banking company from- creating floating charges on the undertaking or any property of the company or any part thereof.
In terms of section 45Y of the Banking Regulation Act, 1949, the rules specifying the period for which a bank may preserve its books, account, instruments, documents etc. are made by- Central Government.
While returning a paid instrument to a customer in terms of section 45Z(1) of the Banking Regulation Act, 1949, the bank must- retain a true copy of all relevant parts of such instruments.
In terms of powers conferred under section 21 and 35A of the Banking Regulation Act, 1949, the Reserve Bank of India has advised banks that all transaction, including payment of interest on deposits/charging interest on advances, should be rounded off to the nearest multiple of- 1 rupee(now-please confirm).

RBI-Quantitative Credit Control

2011-11-07T13:23:00.001+05:30

Stipulation of certain minimum margin in respect of advance against specified commodities- is adopted by RBI does not fall within "general" or "quantitative" method of credit control.
For the performance of its duties as the regulator of credit, the RBI posses the usual instruments of general credit control viz,- Bank Rate, Open market operation and the power to vary the reserve requirements of banks.
Open market operation are employed by RBI with a view to- minimise fluctuations in money supply, as as an adjunct to Bank Rate to make it function more effectively, maintain stability in the average price of government securities.
Bank rate policy, open market operations, variable reserve reserve requirements and, statutory liquidity requirements employed by RBI as measures of credit control are classified as- Quantitative methods.
Selective credit control, credit authorisation scheme, Moral Suasion- are fall under the Qualitative methods of credit control adopted by RBI.
The term Moral Suasion refers to- the advice given by RBI to banks/financial institution in the matter of their lending and other operations with the objective that they might implement or follow it.

RBI-Bank Rate

2011-11-06T17:25:00.001+05:30

Bank Rate means- the standard rate at which the RBI is prepared to buy or rediscount bills of exchange or other commercial paper eligible for purchase under the Reserve Bank of India Act, 1934.
When the RBI desires to restrict expansion of credit it- raise the Bank Rate.
In period of depression when the Reserve Bank desires to encourage the Banking system to create more credit it- reduce the bank rate.

RBI-OPEN MARKET OPERATION

2011-11-06T17:11:00.000+05:30

To regulate the flow of credit in the economy, one of the measures adopted by RBI is 'Open Market Operation'. The term open market operation in this connection refers to- sale or purchase of short term or long term government securities by Reserve Bank.
Open market operations are employed by Reserve bank of India- to control the reserve base of banks, to minimize fluctuation in money supply, as an adjunct to Bank Rate to make it function more effectively.
In period of boom, which leads to economic instability, the Reserve Bank resorts to- sale in the market of first class securities in its possession to reduce the supply of money as a measure of open market operations.

RESERVE BANK OF INDIA

2011-11-06T16:45:00.001+05:30

The Remittance Facility Scheme which the reserve bank has been operating since 1940 may be availed of by all-Central and State Governments, Schedule and non-schedule banks, General public.
The terms "Ways and Means" advances refers to- the temporary advance made to the Government by its bankers to bridge the interval between expenditure and the flow of receipts of revenues.
Section 17(5) of the Reserve Bank of India Act, empowers the Bank to make, to the Central and State Governments, ways and means advances which are repayable not later than- three months from the date of advance.
Accepting deposit and making loans and advances to public- do not fall within the functions of Reserve Bank of India.
Acting as note issuing authority, banker's bank and banker to the government- are the main functions of the Reserve Bank of India.
Issuing or making of any promissory note expressed to be payable to bearer thereof by a person other than the Reserve Bank of India or the Central Governments is prohibited under- Section 31(2) of the Reserve Bank of India Act, 1934.
Drawing, accepting, making or issuing of nay promissory note, hundi or bill of exchange expressed to be payable to bearer on demand by person other then the Reserve Bank of India or the Central Government is prohibited under- Section 31(1) of the Reserve Bank of India Act 1934.
Reserve Bank of India is the lender of the last resort to schedule commercial banks because- RBI meet directly or indirectly all the reasonable demands for financial accommodation subject to certain terms and conditions which constitute its discount rate policy.
Under the power derived from section 20, 21 and 21A of the Reserve Bank of India Act, 1934- The Reserve Bank of India manages the public debt and issues new loans on behalf of Central and State Governments.
The Public Debt Offices function under control of- Reserve Bank of India.
Public debt management i.e, raising the finance by Government is attended to by- Reserve Bank of India.
Reserve Bank of India- acts as adviser to the Government not only on policies concerning banking and financial matters but also on a wide range of economic issues including those in the field of planning and resource mobilization.
Maintenance of external value of the rupee is one of the essential function performed by RBI.
The RBI does not deal in foreign exchange directly with the public.
In India foreign exchange regulations are administered by RBI.
Effective from 22nd December, 1993 RBI has setup a new department viz., Department of Supervision which has taken over- the work relating to the supervision of commercial banks from the Department of Banking Operation and Development.
The supervisory function relating to financial institutes of all-India and state levels and non-banking financial companies, Special investigation including those connected with compliance and fraud, Appointment of statutory auditors for 25 public sector bank, 7 public financial companies and the Reserve bank of India- are functions of the Department of supervision set up by RBI.
The facility of maintaining of account by banks with RBI can not be utilized for- facilitation credit to account of third parties.
The Public Debt Office of the RBI- is a central depository for all type of Government securities except Treasury Bills.
In terms of Section 17 of the Reserve Bank of India Act, 1934, No interest paid on the deposit accounts of Central and State Government held by RBI.
Under Section 19 of the RBI Act, 1934 the RBI has been prohibited from- making loan or advances, drawing or accepting bills payable otherwise than on demand, allowing interest on deposits or current account.
Introduction of rating methodology for bank was introduce by RBI on the lines of- CAMEL.
Section 45 S of the Reserve Bank of India Act, 1934 as amended in 1997- prohibits the conduct of banking business by an incorporated no-banking entity like a shroff, clamped a total ban on accepting deposits by individuals and incorporated associations of individuals engaged in financial activity, has been upheld in a landmark judgement by the Supreme Court to be constitutionally valid.

BASEL II: RECOMMENDATIONS ON CAPITAL CHARGE

2011-11-04T21:10:00.000+05:30

The ability of a bank to absorb unexpected shocks and losses rests on its capital base. Basel II norms are centered on sustain economic development over the long haul and include
(1) promotion of safety and soundness in the financial systems,
(2) the enhancement of competitive equality, and
(3) the constitution of more comprehensive approach to address risk.
The new proposal is based on three mutually reinforcing pillars that allow banks and supervisors to evaluate properly the various risk that banks face and realign the regulatory capital more closely with the underlying risk.
Each of these three pillars has risk mitigation as its central plank. The new risk sensitive approach seeks to strengthen the safety and soundness of the industry by focusing on:

Risk-based capital (Pillar 1) - assessment of minimum capital requirement for banks
Risk-based supervision (Pillar 2) - supervision to review bank's capital adequacy and internal assessment process
Risk disclosure and encourage to enforce market discipline (Pillar 3) - use of market discipline for greater transparency and disclosure and encouraging best international practice

SINKING-FUND METHOD OF RETIRING A DEBT

2011-11-04T20:07:00.000+05:30

A common method of paying off long-term loan is to pay the interest on the loan at the end of each interest period and create a sinking-fund to accumulate the principle at the end of the term of the loan. Usually, the deposit into the sinking fund are made at the same times as the interest payments on the debt are made to the lender. The sum of the interest payment and the sinking-fund payment, is called the periodic expense or cost of the debt. It should be noted that the sinking fund remains under the control of the borrower. At the end of the term of the loan, the borrower returns the whole principal as a lump-sum payment by transferring the
accumulated value of the sinking fund to the lender, When the sinking fund method is used, we detain the book value of the borrower's debt at any time as the original principal, minus the amount in sinking-fund. The book value of the debt, may be considered as the outstanding balance of the loan.

SINKING FUND

2011-11-04T19:47:00.003+05:30

When a specified amount of money is needed at a specified future date, it is good practice to accumulate systematically a fund by means of equal periodic deposit. Such a fund is called a sinking fund. Sinking funds are used to pay-off debts, to redeem bond issues, to replace worn-out equipment, to by new equipment, or in one of the depreciation method. Since the amount needed in sinking fund, the time the amount is needed and interest rate that the fund earns are known, we have an annuity problem in which the size of payment, sinking
fund deposit, is to be determined. A schedule showing how a sinking fund accumulates to the desired amount is called a sinking-fund schedule.
Illustration:
If you wish an annuity to grow to Rs. 17,000 over 5 years so that you can repalce your car, what monthly deposit would be required if you could invest at 12% compounded monthly?
F = A[(1+i)^n-1/i]
i = 12%/12 = 0.01
n = 5*12 = 60
F = 17,000
17,000 = A[(1+0.01)^60-1/0.01]
A = 208.6
The monthly payment should be Rs. 208.16

ANNUITIES

2011-11-03T21:45:00.000+05:30

At some point of your life, you may have had to make a series of fixed payments over a period of time- such as rent or car payment- or have received a series of payments over a period time, such as bond coupons. These are called annuities. If you under stand the time value of money and have an understanding of the future and present value, it would be easy to understand annuities.
The most common famous frequencies are yearly, semi-annually, quarterly and monthly. There are two basic types of annuities : ordinary annuities and annuities due
Ordinary annuities: Payment are required at the end of each period, For an illustration, straight bonds usually make coupon payments at the end of every six months until the bond's maturity date
Future Value of Ordinary Annuity = C*[{(1+i)^n-1}/i]
Present Value of Ordinary Annuity = C*[{(1+r)^n-1}/r(1+r)^n]

C = Cash flow per period
i = Interest rate
n = number of payment

Annuity Due: Payment are required at the beginning of each period. rent is an illustration of annuity due. You are usually required to pay rent when you first move in at the beginning of the month, and then on the first of each month thereafter.
Future Value of Annuity Due: = C*[{(1+r)^n-1}/i]*(1+i)
Present Value of Annuity Due: = C*[[(1+r)^n-1}/r(1+r)]*(1+r)

C = Cash flow per period
i = Interest rate
n = number of payment

FIXED AND FLOATING INTEREST RATES

2011-11-03T21:07:00.001+05:30

Fixed Rate: In the fixed rate, the rate of interest is fixed. It will not change during entire period of the loan. For example, if a home loan, taken at an interest rate of 12%, is repayable in 10 years, the rate will remain the same during the entire tenure of 10 years even if the market rate increase or decrease. The fixed rate is, normally higher than the floating rate, as it is not affected by market fluctuation.

Floating Rate: In the floating rate or variable rate, the rate of interest changes, depending upon the market condition. It may increase or decrease. For example, if a home loan is taken at an interest rate of 12% , repayable in 10 years, in April 2006, and if the market rate increases to 12.5% in April 2007, the interest rate of this loan will also be increased to 12.5% If the loan is under the EMI system, depending upon the change in interest rate, the repayment period varies, but equated monthly installment remain the same.
Depending upon the prevailing market conditions, people may choose fixed and a floating rate.

EQUATED MONTHLY INSTALLMENTS(EMI)

2011-11-03T20:45:00.000+05:30

This is the most common method of repayment of loan is adopted in banking. Under this system, the principal and interest thereon is repaid through equal monthly installment over the fixed tenure of loan.
The formula for calculation of EMI
EMI = [(P*r)*(1+r)^n]/[1+r)^n-1]
Where P = principal (amount of loan)
r = rate of interest per installment period
n = no. of installments in the tenure
For Example, for a loan of Rs. 1,00,000 at an interest rate of 12% p.a. is to be repaid in 12 months, the EMI is
P = 1,00,000
r = 12%/12 = 1% i.e. 1/100 = 0.01

EMI = [(1,00,000*0.01)*(1+0.01)^12]/[(1+0.01)^12-1]
= (1,000*0.01^12)/(1.01^12-1)
= 1,000*1.126825/0.126825
= 8,884.8789 rounded to 8,885
Thus the EMI = 8,885.
Illustration:
Find out the EMI for a housing loan of Rs. 10,00,000/- at an interest rate of 10.50 per annum repayable in 15 years.
Solution:
P = 10,00,000
r = 10.50%/12 = 0.00875
n = 15*12 = 180

EMI = [P*r*(1+r)^n]/[(1+r)^n-1]
= 10,00,000*0.00875*(1+0.00875)^180/(1.00875^180-1)
= 8,750*4.797761/3.797761
EMI = 11,054