Wednesday 20 April 2016

Important Q A on Banking (useful for general awareness/Financial Awareness paper):

Important Q A on Banking (useful for general awareness/Financial Awareness paper):
Q: Give overview of Consumer Protection Act 
A: It is implemented from 1987 to enforce consumer rights through a simple legal procedure. Banks also are covered under the Act. A consumer can file complaint for deficiency of service with Consumer District Forum for amounts upto Rs.20 Lacs in District Court, and for amounts above Rs.20 Lacs to Rs.1 Crore in State Commission and for amounts above Rs.1 Crore in National Commission.
Q:What is Co-operative Bank
A : An association of persons who collectively own and operate a bank for the benefit of consumers / customers, like Saraswat Co-operative Bank or Abhyudaya Co-operative Bank and other such banks.
Q:What is Co-operative Society 
A: When an association of persons collectively own and operate a unit for the benefit of those using its services like Apna Bazar Co-operative Society or Sahakar Bhandar or a Co-operative Housing Society.
Q:What is Core Banking Solutions (CBS)
A : Core Banking Solutions is a buzz word in Indian banking at present, where branches of the bank are connected to a central host and the customers of connected branches can do banking at any breach with core banking facility.
Q:What is Crossing of Cheques 
A: Crossing refers to drawing two parallel lines across the face of the cheque.A crossed cheque cannot be paid in cash across the counter, and is to be paid through a bank either by transfer, collection or clearing.A general crossing means that cheque can be paid through any bank and a special crossing, where the name of a bank is indicated on the cheque, can be paid only through the named bank.
Q:What is Current Account
A : Current account with a bank can be opened generally for business purpose. There are no restrictions on withdrawals in this type of account. No interest is paid in this type of account.
Q Define Customer
A : A person who maintains any type of account with a bank is a bank customer. Consumer Protection Act has a wider definition for consumer as the one who purchases any service for a fee like purchasing a demand draft or a pay order. The term customer is defined differently by Laws, softwares and countries.
Q:What is Debit Card 
A: A plastic card issued by banks to customers to withdraw money electronically from their accounts. When you purchase things on the basis of Debit Card the amount due is debited immediately to the account . Many banks issue Debit-Cum-ATM Cards.
Q:Who is Debtor
A : A person who takes some money on loan from another person.
Q:What is Demand Deposits 
A: Deposits which are withdrawn on demand by customers.E.g. savings bank and current account deposits.
Q:What isDemat Account 
A: Demat Account concept has revolutionised the capital market of India. When a depository company takes paper shares from an investor and converts them in electronic form through the concerned company, it is called Dematerialisation of Shares. These converted Share Certificates in Electronic form are kept in a Demat Account by the Depository Company, like a bank keeps money in a deposit account. Investor can withdraw the shares or purchase more shares through this demat Account.
Q:What isDishonour of Cheque
A : Non-payment of a cheque by the paying banker with a return memo giving reasons for the non-payment.
Q What is E-Banking ?
A: E-Banking or electronic banking is a form of banking where funds are transferred through exchange of electronic signals between banks and financial institution and customers ATMs, Credit Cards, Debit Cards, International Cards, Internet Banking and new fund transfer devices like SWIFT, RTGS belong to this category.
Q What is EFT - (Electronic Fund Transfer)?
A : EFT is a device to facilitate automatic transmission and processing of messages as well as funds from one bank branch to another bank branch and even from one branch of a bank to a branch of another bank. EFT allows transfer of funds electronically with debit and credit to relative accounts.
Q What is Either or Survivor ?
A: Refers to operation of the account opened in two names with a bank. It means that any one of the account holders have powers to withdraw money from the account, issue cheques, give stop payment instructions etc. In the event of death of one of the account holder, the surviving account holder gets all the powers of operation.
Q What is Electronic Commerce (E-Commerce)?
A: E-Commerce is the paperless commerce where the exchange of business takes place by Electronic means.
Q What is Endorsement?
A : When a Negotiable Instrument contains, on the back of the instrument an endorsement, signed by the holder or payee of an order instrument, transferring the title to the other person, it is called endorsement.
Q What is Endorsement in Blank ?
A: Where the name of the endorsee or transferee is not mentioned on the instrument.
Q What is Endorsement in Full ?
A: Where the name of the endorsee or transferee appears on the instrument while making endorsement.
Q What is Execution of Documents ?
A: Execution of documents is done by putting signature of the person, or affixing his thumb impression or putting signature with stamp or affixing common seal of the company on the documents with or without signatures of directors as per articles of association of the company.

Anil Aggarwal
Owner & Manager at Anil Aggarwal Coaching
(A proprietorship concern for IBPS exam guidance and Bank Interview preparation)
 Mobile:                               +91 9811340788
E-mail ID:         anilakshita@yahoo.co.in
Office: Flat #49, Trilok Apartments, Patparganj, I.P. Extension, Delhi-110092.

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