CAIIB-BFM-Correspondent Banking & NRI Accounts

Q1. Account of a domestic bank abroad (say, of SBI outside India) is called:

A.      NOSTRO account

B.      VOSTRO account

C.      LORO account

D.      MIRROR account

Q2. “His Account with us” is called:

A.      NOSTRO account

B.      VOSTRO account

C.      LORO account

D.      MIRROR account

Q3. “Your account with us” is called:

A.      NOSTRO account

B.      VOSTRO account

C.      LORO account

D.      MIRROR account

Q4. Relationship between two banks which have mutual accounts with each other, or one of them having account with the other is called:

A.      NRI Banking

B.      Relationship Banking

C.      Correspondent Banking

D.      Universal Banking

Q5. CHIPS (Clearing House Inter-bank Payment System) is a major payment system in:

A.      Europe

B.      USA

C.      UK

D.      Singapore

Q6. UID numbers are used to identify the beneficiary account, by which of following payment systems:

A.      SWIFT

B.      CHIPS

C.      CHAPS

D.      FEDWIRE

Q7. The FEDWIRE payment system is operated by:

A.      Bank of England in UK

B.      Federal Reserve Bank in US

C.      European Central Bank in Europe

D.      Reserve Bank of Australia in Australia

Q8. Foreign Currency Non-Resident (Bank) FCNR (B) can be opened as

A.      Saving bank or Current account

B.      Recurring deposit account for a fixed period of 1 year to 5 years.

C.      Term deposit account for a fixed period of 1 year to 5 years.

D.      Term deposit account for a fixed period of 1 year to 3 years.

Q9. Who is a non-resident as per provision of FEMA 1999 :

A.      A person who has gone abroad for a tour.

B.      A person who is staying abroad for more than 180 days in a year.

C.      A person who is staying abroad.

D.      A person who is not resident

Q10. NRI can not make investment in which of the following:

A.      Govt. Securities

B.      Small saving scheme and Public Provident Fund

C.      Treasury bills

D.      Units of Mutual Funds

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Process for Modification in Aadhaar seeding

When we update the Aadhar number in Finacle, sometime it show error " Either Aadhar number or Customer ID is already mapped" & we are not able to update the given AADHAAR to the desire Account number ( i.e Pensioner, Student, Gas connection etc.) because they already mapped with AADHAAR number with other Account number .

In that situation, we can solve these problem with following steps:-

First of all we open the Menu - HAPBSLN-

 

then Enter

Select Option - MODIFY

Then
Select Account/AADHAAR -  AADHAAR
AADHAAR Number -.....  Write AADHAAR Number--
 then ACCEPT

Now we have three option in Modify
1. AADHAAR
2. Customer
3. Deletion
If you want to modify Customer , then select - Customer

Now erase the previous & write the new customer ID in which we want to add AADHAAR number . If the customer ID is same ( i.e. Only one ) the fetch the Account number tree. & select the fetch Account number.

After selecting the account , following screen will be appears.

After that click on Submit/Accept

Now Record Modify Successfully, wait for verification .....

I think it will help you to update the AADHAAR seeding where the error show "Either AADHAAR number or Customer ID is already mapped"

Thanks

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Pradhan Mantri Jeevan Jyoti Bima Yojana

In the budget for the financial year 2015-16, finance minister announced for three security schemes in Non life insurance, Life insurance and pension, together covering to take Jan Dhan to next level of Jan Suraksha. These schemes have been rolled out from 01.06.2015.

Pradhan Mantri Jeevan Jyoti  Bima Yojana will be an Insurance Scheme offering life insurance cover for death due to any reason.

Highlight:

Ø  It would be a one year cover, renewable from year to year.

Ø  The scheme would be offered and administered through LIC and other Life Insurance companies willing to offer the product on similar terms with necessary approvals and tie ups with Banks for this purpose.

Ø  Participating banks will be free to engage any such life insurance company for implementing the scheme for their subscribers.

Ø  In case of multiple bank accounts held by an individual in one or different banks, the person would be eligible to join the scheme through one bank account only.

Ø  Aaadhar would be the primary KYC for the bank account.

Eligibility Conditions:

 Individual bank account holders of the participating banks aged between 18 years (completed) and 50 years (age nearer birthday) who give their consent to join / enable auto-debit, as per the above modality, will be enrolled into the scheme.

Enrolment period:

 For the cover period 1st June 2016 to 31st May 2017, subscribers are required to enroll and give their auto-debit consent by 31st May 2016.

 Enrolment Modality:

Ø  The cover shall be for the one year period stretching from 1st June to 31st May for which option to join / pay by auto-debit from the designated individual bank account on the prescribed forms will be required to be given by 31st May of every year.

Ø  Delayed enrolment with payment of full annual premium for prospective cover is possible.

Ø  Subscribers enrolling for the first time on or after 1st June 2016, insurance cover shall not be available for death (other than due to accident) occurring during the first 45 days from the date of enrolment into the scheme (lien period) and in case of death (other than due to accident) during lien period, no claim would be admissible.

Ø  Individuals who exit the scheme at any point may re-join the scheme in future years. The exclusion of insurance benefits during the lien period shall also apply to subscribers who exit the scheme during or after the first year, and rejoin on any date on or after 01st June 2016.

Benefits:

 Rs.2 lakh is payable on member’s death due to any cause.

 Premium:

Ø  Rs.330/- per annum per member.

Ø  The premium will be deducted from the account holder’s bank account through ‘auto debit’ facility in one installment, as per the option given, on or before 31 st May of each annual coverage period under the scheme.

Ø  Delayed enrolment for prospective cover after 31st May will be possible with full payment of annual premium.  

Master Policy Holder:

 Participating Banks will be the Master policy holders. A simple and subscriber friendly administration & claim settlement process shall be finalized by LIC / other insurance company in consultation with the participating bank.

Termination of assurance:

The assurance on the life of the member shall terminate on any of the following events and no benefit will become payable there under:

Ø  On attaining age 55 years (age near birth day) subject to annual renewal up to that date (entry, however, will not be possible beyond the age of 50 years).

Ø  Closure of account with the Bank or insufficiency of balance to keep the insurance in force.

Ø  In case a member is covered under PMJJBY with LIC of India / other company through more than one account and premium is received by LIC / other company inadvertently, insurance cover will be restricted to Rs. 2 Lakh and the premium paid for duplicate insurance(s) shall be liable to be forfeited.

Ø  If the insurance cover is ceased due to any technical reasons such as insufficient balance on due date or due to any administrative issues, the same can be reinstated on receipt of full annual premium, subject however to the cover being treated as fresh and the 45 days lien clause being applicable.

Ø  Participating Banks shall remit the premium to insurance companies in case of regular enrolment on or before 30th of June every year and in other cases in the same month when received.

Appropriation of Premium:

Ø  Insurance Premium to LIC / insurance company: Rs.289/- per annum per member

Ø  Reimbursement of Expenses to BC/Micro/Corporate/Agent: Rs.30/- per annum per member

Ø  Reimbursement of Administrative expenses to participating Bank: Rs.11/- per annum per member

The date of commencement of the scheme is 1st June 2015.The Annual renewal date shall be each successive 1 st of June in subsequent years.

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NRI Banking

NRI ( Non Resident Indian)

As per the FEMA 1999, a Non-Resident Indian means-

A.      A person resident outside India who is a citizen of India, i.e  –

Ø  Indian citizens who proceed abroad for employment or for carrying or for carrying on any business or vocation or for any other purpose

Ø  Indian citizens working abroad

Ø  Officials of Central and State Government and Public Sector Undertaking deputed abroad on assignment with Foreign Govt

B.      A person of Indian origin who is a citizen of any other country other than Bangladesh or Pakistan, if

Ø  He, at any time, held the Indian Passport

Ø  He or either of his parents or any of its grandparents was a citizen of India.

Ø  The person is a spouse of an Indian citizen or a person referred in sub clause b(i) or (ii) above  

Thus, an NRI is a person of Indian nationality or origin, who resides abroad for business or vocation or employment, or intention of employment or vocation, and the period of stay abroad is infinite.

A person is of Indian origin if he has held an Indian passport, or he/she or any of his/hers parents or grandparents was a citizen of India.

NRIs have been provided with various schemes to open accounts and invest in India. The types of account facilities available at present are –

1.       Non-Resident (External ) Rupee Account  {NRE}

2.       Non-Resident Ordinary  Rupee Account  {NRO}

3.       Foreign Currency (Non-Resident) Account (Bank) { FCNR (B) }

Non-Resident (External ) Rupee Account  {NRE}

Ø  Accounts are maintained in Indian rupees.

Ø  Can be opened and maintained by NRI during the temporary visit to India.

Ø  Account can be as Saving Bank Account, Current Account, Recurring Account or term deposit with a minimum period of one year.

Ø  Account can be opened as Joint Account, in the name of two or more non-resident individuals

Ø  Jointly with a person resident in India is not permitted

Ø  Nomination facility is permitted either resident or non-resident

Ø  Income by way of interest on balance held in NRE account is exempted from income tax, gift tax and wealth tax.

Ø  Allowing temporary overdrawing up to Rs 50,000 in NRE saving account however such overdraft must be cleared within two week by remittance from abroad or from any other NRE account

Ø  NRE term deposits can be made for a minimum period of one year, with a maximum up to 3 years.

Non-Resident Ordinary Rupee Account { NRO}

Ø  Account are maintained in Indian rupees.

Ø  Open and maintained by any person resident outside India and also by Foreign Tourists, who visit to India on tourist visa.

Ø  When a resident becomes a Non-Resident, his domestic Rupee account has to be re-designated as an NRO account

Ø  NRO account can be opened as Joint Accounts, with resident Indians

Ø  An amount up to USD 1 million can be repatriated out of funds held n NRO account for permissible transactions, subject to payment of income tax at applicable rates.

Ø  Nomination facility is available in NRO account.   

Foreign Currency (Non-Resident) Account (Bank) { FCNR (B) }

Ø  These are foreign currency account

Ø  Opened and maintained by Non-Resident Indians in designated currencies only viz. US Dollor, EURO, Great Britain Pounds and Japanese Yen, CAD and AUD.

Ø  NRI can open these account only in the form of Term Deposit, with minimum period of one year and maximum period of five years.

Ø  Joint account can be opened in the name of two or more non-Resident Individuals, who are persons of Indian nationality or Indian origins.

Ø  Interest paid on the basis of 360 days to a year, cumulative on half-yearly intervals of 180 days

Ø  Income earned by way of interest is exempted by income tax .

Ø  Nomination facility is available.

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Answer Key of CAIIB-BFM-02

Now I am providing you the Answer Key of CAIIB-BFM-02. You can leave a massage and also comment on these Question -Answer so we provide you a better discussion platform that can help you to crack the CAIIB.

The Answer Keys are -

Q1 – C. Both

Q2 – C. Liquidity risk

Q3 – C. Liquidity risk

Q4 – C. Gap limit

Q5 – D. Dealer limit

Q6 – B. Settlement risk

Q7 – A. Deal size limit

Q8 – B. Stoploss

Q9 – B. Swap

Q10 – C. Future

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