IMPORTANT FOR COMPETITIVE EXAM

2. SWIFT (Society for the Worldwide Interbank
Financial Telecommunication)
 Founded in Brussels in 1973, the Society for the Worldwide Interbank Financial Telecommunication
(SWIFT) is a co-operative organization dedicated to the promotion and development of standardized
global interactivity for financial transactions. SWIFT's original mandate was to establish a global
communications link for data processing and a common language for international financial
transactions. The Society operates a messaging service for financial messages, such as letters of
credit, payments, and securities transactions, between member banks worldwide. SWIFT's essential
function is to deliver these messages quickly and securely -- both of which are prime considerations
for financial matters. Member organizations create formatted messages that are then forwarded to
SWIFT for delivery to the recipient member organization. SWIFT operates out of its Brussels
headquarters and processes data at centers in Belgium and the United States.

3.  SWIFT(1973),H.Q-BELGIUM
 Society for Worldwide Inter-bank Financial Telecommunications (SWIFT) is a co-operative non-profit making
organization established under Belgian law with its head quarters at Brussels. SWIFT is wholly owned by its member
banks. SWIFT is a paperless message transmission system.
 SWIFT – important features:
 Operates on 24x7 basis throughout the year.
 All messages are transmitted to any part of the world immediately.
 Message formats are standardized.
 Information is confidential and is protected against unauthorized disclosure.
 SWIFT assumes financial responsibility for the accuracy and timely delivery.
 SWIFT and banks:
 SWIFT has become an integral part of banking system. SWIFT assist member banks.
 SWIFT transmit authenticated financial and non financial messages.
 SWIFT with its well-standardized and structured message formats have been offering a reliable system of message
transmission.
 Banks use SWIFT platform to for transmission of financial and non financial messages covering international finance
(settlement of forex deals), international trade (advising of LCs, amendments to LCs etc.,).

4. OPEC (The Organization of the
Petroleum Exporting Countries)
• The Organization of the Petroleum Exporting Countries (OPEC) is a permanent, intergovernmental
Organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait,
Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members:
• Qatar (1961);
• Indonesia (1962) – suspended its membership from January 2009- December 2015;
• Libya (1962);
• United Arab Emirates (1967);
• Algeria (1969);
• Nigeria (1971);
• Ecuador (1973) – suspended its membership from December 1992-October 2007;
• Angola (2007) and
• Gabon (1975–1994).
OPEC had its headquarters in Geneva, Switzerland, in the first
five years of its existence. This was moved to Vienna, Austria,
on September 1, 1965.

5. OPEC's objective is:-
 to co-ordinate and unify petroleum policies among Member Countries, in order to secure fair
and stable prices for petroleum producers; an efficient, economic and regular supply of
petroleum to consuming nations; and a fair return on capital to those investing in the industry.
 The global economy represented the main risk to the oil market early in the decade, as global
macroeconomic uncertainties and heightened risks surrounding the international financial
system weighed on economies. Escalating social unrest in many parts of the world affected
both supply and demand throughout the first half of the decade, although the market remained
relatively balanced. Prices were stable between 2011 and mid-2014, before a combination of
speculation and oversupply caused them to fall in 2014. Trade patterns continued to shift, with
demand growing further in Asian countries and generally shrinking in the OECD. The world’s
focus on multilateral environmental matters began to sharpen, with expectations for a new UN-
led climate change agreement. OPEC continued to seek stability in the market, and looked to
further enhance its dialogue and cooperation with consumers, and non-OPEC producers.

6. The South Asia Free Trade
Agreement (SAFTA)
 The South Asia Free Trade Agreement (SAFTA) was agreed to among the seven South
Asia countries that form the South Asian Association for Regional Cooperation
(SAARC): Bangladesh, Bhutan, India, Maldives, Nepal, Pakistan and Sri Lanka SAFTA
came into effect on 1 January 2006, with the aim of reducing Tarrifs for intraregional
trade among the seven SAARC members. Pakistan and India are to complete
implementation by 2012, Sri Lanka by 2013 and Bangladesh, Bhutan, Maldives and
Nepal by 2015. SAFTA replaces the earlier South Asia Preferential Trade Agreement
(SAPTA) and may eventually lead to a full-fledged South Asia Economic Union. The
road to implementation, however, is plagued by the overarching conflict between India
and Pakistan.

7. The United Nations Conference on
Trade and Development (UNCTAD)
 In the early 1960s, mounting concerns about the place of developing countries in international trade led
many of these countries to call for the convening of a full-fledged conference specifically devoted to
tackling these problems and identifying appropriate international actions.
 The first United Nations Conference on Trade and Development (UNCTAD) was held in Geneva in
1964.
 Concurrently, the developing countries established the Group of 77 to voice their concerns. (Today, the
G77 has 131 members.)
 The well-known Argentinian economist Raúl Prebisch, who had headed the United Nations Economic
Commission for Latin America and the Caribbean, became the organization's first Secretary-General.

8. Key developments in the
international context:
 The conclusion of the Uruguay Round of trade negotiations under the GATT resulted in the establishment of
the World Trade Organizationin 1995, which led to a strengthening of the legal framework governing
international trade.
 A spectacular increase in international financial flows led to increasing financial instability and volatility.
 Against this background, UNCTAD's analysis gave early warning concerning the risks and the destructive
impact of financial crises on development. Consequently, UNCTAD emphasized the need for a more
development-oriented "international financial architecture".
 Foreign direct investment flows became a major component of globalization.
 UNCTAD highlighted the need for a differentiated approach to the problems of developing countries. Its tenth
conference, held in Bangkok in February 2000, adopted a political declaration – "The Spirit of Bangkok" – as a
strategy to address the development agenda in a globalizing world.

9. In recent years, UNCTAD has
 Further focused its analytical research on the linkages between trade,
investment, technology and enterprise development.
 Put forward a "positive agenda" for developing countries in international trade
negotiations, designed to assist developing countries in better understanding
the complexity of the multilateral trade negotiations and in formulating their
positions.
 Expanded work on international investment issues, following the merger into
UNCTAD of the New York–based United Nations Centre on Transnational
Corporations in 1993.

10. The Organisation for Economic Co-
operation and Development (OECD)
 The Organisation for Economic Co-operation and Development (OECD) was formally born
on 30 September 1961.
 The mission of the Organisation for Economic Co-operation and Development (OECD) is to
encourage policies that will advance the economic and social well-being of people around the
world. The OECD provides a platform in which governments can work together to share
experiences and seek solutions to common problems. They work with governments to
understand what drives economic, social and environmental change. They measure
productivity and global flows of trade and investment, analyse and compare data to predict
future trends and set international standards on a wide range of things, from agriculture and tax
to the safety of chemicals.

11. Functions of UNCTAD:
 To promote international trade all eve; the world-between developed and
developing countries with different socioeconomic systems, and thus to
accelerate economic development.
 To formulate principles and policies on international trade and related
problems of economic development.
 To make proposals for putting the said principle and policies into effect.
 Generally, to review and facilitate the co-ordination of activities of the other
institutions within the U.N. system in the field of international trade.
 To be available as a centre for harmonious trade and related documents in
development policies of governments.

12. South Asian Preferential Trade
Arrangement (SAPTA)
 It is an inter-government group (IGG) formed by South Asian Association for Regional
Cooperation (SAARC) members to negotiate matters on tariff reforms. It was negotiated in the
year 1993 by the 7 developing countries that were members of South Asian Association for
Regional Cooperation (SAARC). The declared objectives of the SAPTA are:
i. To promote and sustain mutual trade, and
ii. To develop economic co-operation among developing countries.
 As a result of the First Round of Negotiations under SAPTA for the exchange of trade
 concessions among the Member-States, India, being the major participating economy in the
region, has given deeper cuts (up to 50%) in the MFN tariff rates on imports of maximum
number commodities (106) from the countries in the region, followed by Pakistan 10-20% in
35 commodities, Bangladesh 10% in 12 commodities and Bhutan 15% in 11 commodities.

13.  The completion of Second round of SAPTA Negotiations has resulted in
exchange of tariff concessions on 1972 tariff line. Out of this, India has
offered concessions on 911 tariff line and received concessions on 456 tariff
line at the six digit level. The Third Round of SAPTA Negotiations has also
been completed to further deepen and enlarge exchange of tariff concessions
and removal of non-tariff barriers.

14. The American Accounting
Association (AAA)
 The American Accounting Association (AAA) promotes worldwide excellence in
accounting education, research and practice. Founded in 1916 as the American
Association of University Instructors in Accounting, its present name was adopted in
1936. The Association is a voluntary organization of persons interested in accounting
education and research.
 MISSION
 To promote worldwide excellence in accounting education, research and practice.

15. The American Marketing
Association (AMA)
 The American Marketing Association (AMA) is a professional
association for marketing professionals with 30,000 members as of 2012. It
has 76 professional chapters and 250 collegiate chapters across the United
States.
 The AMA was formed in 1937 from the merger of two predecessor
organizations, the National Association of Marketing Teachers and the
American Marketing Society. It also publishes a number of handbooks and
research monographs. The AMA publishes the Journal of Marketing, Journal
of Marketing Research, Journal of Public Policy & Marketing,
and Marketing News.

16. Bureau of Indian Standards (BIS)
 The Bureau of Indian Standards (BIS) is the national Standards Body of India working
under the aegis of Distribution, Government. It is established by the Bureau of Indian
Standards Act, 1986 which came into effect on 23 December 1986. The Minister in charge of
the Ministry or Department having administrative control of the BIS is the ex-officio President
of the BIS.
 The organisation was formerly the Indian Standards Institution (ISI), set up under the
Resolution of the then Department of Industries and Supplies No. 1 Std.(4)/45, dated 3
September 1946. The ISI was registered under the Societies Registration Act, 1860.
 As a corporate body, it has 25 members drawn from Central or State Governments, industry,
scientific and research institutions, and consumer organisations. Its headquarters are in New
Delhi, with regional offices in Kolkata, Chennai, Mumbai, Chandigarh and Delhi and 20
branch offices. It also works as WTO-TBT enquiry point for India
Formed 23 December 1986; 29 years ago
Agency executive  Alka Panda, Director General
Parent agency Ministry of Consumer Affairs, Food and Public
Distribution
Website bis.org.in/indes.asp

17. The Association of Mutual Funds in
India (AMFI)
 The Association of Mutual Funds in India (AMFI) is a industry standards
organisation in India in the mutual funds sector. It was formed in 1995.
Most mutual funds firms in India are its members. The organisation aims to
develop the mutual funds market in India, by improving ethical and
professional standards. AMFI was incorporated on 22 August 1995. As of
April 2015, there are 44 members.

18. Central Electricity Regulatory
Commission (CERC)
 Central Electricity Regulatory Commission (CERC), a key regulator of power sector in India, is
a statutory body functioning with quasi-judicial status under sec – 76 of the Electricity Act 2003.
CERC was initially constituted on 24 July 1998 under the Ministry of Power’s Electricity
Regulatory Commissions Act, 1998 for rationalization of electricity tariffs, transparent policies
regarding subsidies, promotion of efficient and environmentally benign policies, and for matters
connected Electricity Tariff regulation. CERC was instituted primarily to regulate the tariff
of Power Generating companies owned or controlled by the government of India, and any other
generating company which has a composite scheme for power generation and
interstate transmission of energy, including tariffs of generating companies.
Formed 24 July 1998
Headquarters New Delhi
Parent agency Ministry of Power

19. What is 'LIBOR'
 LIBOR or ICE LIBOR (previously BBA LIBOR) is a benchmark rate that some of the world’s
leading banks charge each other for short-term loans. It stands for Intercontinental Exchange
London Interbank Offered Rate and serves as the first step to calculating interest rates on
various loans throughout the world. LIBOR is administered by the ICE Benchmark
Administration (IBA), and is based on five currencies: U.S. dollar (USD), Euro (EUR), pound
sterling (GBP), Japanese yen (JPY) and Swiss franc (CHF), and serves seven different
maturities: overnight, one week, and 1, 2, 3, 6 and 12 months. There are a total of 35 different
LIBOR rates each business day. The most commonly quoted rate is the three-month U.S. dollar
rate.

20. BREAKING DOWN 'LIBOR'
 LIBOR (or ICE LIBOR) is the world’s most widely-used benchmark for short-term interest rates. It serves as the
primary indicator for the average rate at which banks that contribute to the determination of LIBOR may obtain
short-term loans in the London interbank market. Currently there are 11 to 18 contributor banks for five
major currencies (US$, EUR, GBP, JPY, CHF), giving rates for seven different maturities. A total of 35 rates are
posted every business day (number of currencies x number of different maturities) with the 3-month U.S. dollar
rate being the most common one (usually referred to as the “current LIBOR rate”).
 LIBOR or ICE LIBOR's primary function is to serve as the benchmark reference rate for debt instruments,
including government and corporate bonds, mortgages, student loans, credit cards; as well as derivatives such as
currency and interest swaps, among many other financial products.

21.  For example, take a Swiss franc-denominated Floating-Rate Note (or floater) that pays
coupons based on LIBOR plus a margin of 35 basis points (0.35%) annually. In this case, the
LIBOR rate used is the one-year LIBOR plus a 35 basis point spread. Every year, the coupon
rate is reset in order to match the current Swiss franc one-year LIBOR, plus the predetermined
spread.
 If, for instance, the one-year LIBOR is 4% at the beginning of the year, the bond will pay
4.35% of its par value at the end of the year. The spread usually increases or decreases
depending on the credit worthiness of the institution issuing debt.
 Another prominent trait of LIBOR or ICE LIBOR is that it helps to evaluate the current state of
the world’s banking system as well as to set expectations for future central bank interest rates.
 ICE LIBOR was previously known as BBA LIBOR until February 1, 2014, the date on which
the ICE Benchmark Administration (IBA) took over the Administration of LIBOR.

22. INSURANCE REGULATORY AND
DEVELOPMENT AUTHORITY (IRDA)
• Insurance Regulatory and Development Authority (IRDA) is an autonomous apex
statutory body which regulates and develops the insurance industry in India. It was
constituted by a Parliament of India act called Insurance Regulatory and
Development Authority Act, 1999 and duly passed by the Government of India.
• The agency operates its headquarters at Hyderabad, Andhra Pradesh where it
shifted from Delhi in 2001. The Insurance regulatory and Development Authority
(IRDA), batted for a hike in the foreign direct investment (FDI) limit to 49 per cent in
the sector from the present 26 per cent.

23. STANDARD & POOR'S (S&P)
 Standard & Poor's (S&P) is an American financial services company. It is adivision
of McGraw Hill Financial that publishes financial research and analysis on stocks and
bonds. S&P is known for its stock market indices such as the U.S. - based S&P 500, the
Canadian S&P/TSX, the Australian S&P/ASX 200, and India's S&P CNX Nifty. S&P is
considered one of the Big Three credit-rating agencies, which also include Moody's
Investor Service and Fitch Ratings. Its head office is located New York City, United
States.

24. ASSET RECONSTRUCTION COMPANY
(INDIA) LIMITED (ARCIL)
• Asset Reconstruction Company (India) Limited (ARCIL) is India's first and
largest asset reconstruction company, to commence business of resolution of Non-
Performing Assets (NPAs) upon acquisition from Indian banks and financial
institutions. It is sponsored by prominent banks and financial institutions namely
State Bank of India (SBI), IDBI Bank Limited (IDBI), ICICI Bank Limited (ICICI)
and Punjab National Bank (PNB). ARCIL has its registered office at Mumbai,
Maharashtra.

25. DEPOSIT INSURANCE AND CREDIT
GUARANTEE CORPORATION (DICGC)
 Deposit Insurance and Credit Guarantee Corporation (DICGC) is a
subsidiary of Reserve Bank of India. It was established on 1961 under Deposit
Insurance and Credit Guarantee Corporation Act, 1961 for the purpose of
providing insurance of deposits and guaranteeing of credit facilities. DICGC
insures all bank deposits, such as saving, fixed, current, recurring deposits for
up to the limit of Rs. 100,000.

26. STOCK HOLDING CORPORATION OF INDIA
LIMITED (SHCIL)
 Stock Holding Corporation of India Ltd (SHCIL), India’s largest custodian
and depository participant based in Mumbai, Maharashtra. It was established
in 1986 under the Government of India as public limited company Stock
Holding Corporation of India (SHCIL), the country's first and one of the
largest security custodians to financial institutions, will be merged with state
owned lender IDBI Bank, subject to approvals from regulators and other
SHCIL stakeholders.

27. ASSET MANAGEMENT COMPANY
(AMC)
 An Asset Management Company (AMC) is an asset management / investment
management company/firm that invests the pooled funds of retail investors in
securities in line with the stated investment objectives. For a fee, the company/ firm
provides more diversification, liquidity, and professional management consulting
service than is normally available to individual investors. The diversification of
portfolio is done by investing in such securities which are inversely correlated to each
other. Money is collected from investors by way of floating various mutual fund
schemes.

28. Associated Chambers of
Commerce and Industry of India
(ASSOCHAM)
 The Associated Chambers of Commerce and Industry of India (ASSOCHAM)
is one of the apex trade associations of India. The organisation represents the
interests of trade and commerce in India, and acts as an interface between
industry, government and other relevant stakeholders on policy issues and
initiatives. The goal of this organization is to promote both domestic and
international trade, and reduce trade barriers while fostering conducive
environment for the growth of trade and industry of India. Headquarters is in
New Delhi.

29. FEDERATION OF INDIAN CHAMBERS
OF COMMERCE AND INDUSTRY (FICCI)
 The Federation of Indian Chambers of Commerce and Industry (FICCI) is an
association of business organizations in India. Established in 1927, on the
advice of Mahatma Gandhi by GD Birla and Purushottam Das Thakurdas, it is
the largest, oldest and the apex business organisation in India. It is a non-
government, not-profit organisation. FICCI draws its membership from the
corporate sector, both private and public, including SMEs and MNCs.
 It is headquartered in the national capital New Delhi and has presence in 11
states in India and 8 countries across the world

30. EXPORT CREDIT GUARANTEE
CORPORATION OF INDIA (ECGC)
 The Export Credit Guarantee Corporation of India Limited (ECGC) is a company
wholly owned by the Government of India based in Mumbai, Maharashtra. It
provides export credit insurance support to Indian exporters and is controlled by the
Ministry of Commerce. Government of India had initially set up Export Risks
Insurance Corporation (ERIC) in July 1957. It was transformed into Export Credit
and Guarantee Corporation Limited (ECGC) in 1964 and to Export Credit Guarantee
Corporation of India in 1983 ECGC is the fifth largest credit insurer of the world in
terms of coverage of national exports Headquartered at Mumbai.

31. CENTRAL REGISTRY OF
SECURITISATION ASSET RECONSTRUCTION
AND SECURITY INTEREST (CERSAI)
 The Central Registry of Securitisation Asset Reconstruction and Security Interest of India
(CERSAI) is a company licensed under section 25 of the Companies Act, 1956 and
registered by the Registrar of Companies, New Delhi. CERSAI was promoted by central
government to prevent frauds involving multiple lending by different banks on the same
immovable property. It became operational on March 31, 2011.
 The Company is a Government Company with a shareholding of 51% by the Central
Government and select Public Sector Banks and the National Housing Bank are also
shareholders of the Company.

32. Objective:
 The object of the company is to maintain and operate a Registration System for
the purpose of registration of transactions of securitisation, asset reconstruction of
financial assets and creation of security interest over property, as contemplated under
Chapter IV of the Securitisation and Reconstruction of Financial Assets and
Enforcement of Security Interest Act, 2002. (SARFAESI Act).
 The Registration would be applicable to transactions of security interest over
property created to secure loans and advances from the banks and financial
institutions as defined under the SARFAESI Act.

33. ASB (Accounting Standards Board)
 The role of the Accounting Standards Board (ASB) was to issue accounting standards. It was recognised for that
purpose under the Companies Act 1985. It took over the task of setting accounting standards from the Accounting
Standards Committee (ASC) in 1990.The ASB also collaborated with accounting standard-setters from other
countries and the International Accounting Standards Board (IASB) both in order to influence the development of
international standards and in order to ensure that its standards were developed with due regard to international
developments.
 The ASB had up to ten Board members, of whom two (the Chairman and the Technical Director) were full-time,
and the remainder, who represent a variety of interests, were part-time (see membership of Board). ASB meetings
were also attended by three observers. Under the ASB's constitution, votes of seven Board members (six when
there were fewer than ten members) were required for any decision to adopt, revise or withdraw an accounting
standard. Board members were appointed by a Nominations Committee comprising the chairman and fellow
directors of the Financial Reporting Council (FRC).

34. Scope and Functions of ASB:
 Main function of ASB is to formulate accounting standards.
 While formulation of standards ASB has to consider applicable laws, customs,
social and business environment.
 ASB has to give due consideration to IAS issued by IASC from time to time
to develop own standards in light of conditions and practices being followed
in India.
 ASB has to persuade the accounting professionals and preparers of financial
statements to adopt them.
 ASB has to issue guidance notes on accounting standards.
 To review all accounting standards from time to time.

35. Role of ASB in Development and Enforcement of Standards:
The following steps are taken by ASB for issue of any accounting standard in
India:
• The areas in which accounting standard is needed to be formulated determined by ASB.
• Various study groups are formed by ASB to assist ASB to consider special subjects. However
in forming these groups provision is made for participation of members of institute and others.
• A discussion is arranged with representation of government agencies, public sector
undertaking, industry and other organization.
• An exposure draft is prepared and issued for comments of general public.
• A standard draft is finalized by ASB after taking due consideration of the comments.
• The accounting standard is submitted by ASB to the council of Institute.
• The council may decide to modify the exposure draft in consultation of ASB.
• The accounting standard is then issued under the authority of council of institute.

36. World Intellectual Property
Organisation (WIPO)
 The World Intellectual Property Organization (WIPO) is a
specialized agency of the United Nations.
 It is dedicated to developing a balanced and accessible
international intellectual property (IP) system, which rewards
creativity, stimulates innovation and contributes to economic
development while safeguarding the public interest.
 WIPO was established by the WIPO Convention in 1967 with a
mandate from its Member States to promote the protection of IP
throughout the world through co-operation among states and in
collaboration with other international organizations. Its
headquarters are in Geneva, Switzerland.

37. BANKING CODES AND STANDARDS BOARD
OF INDIA (BSCSBI)• The Banking Codes and Standards Board of India has been registered as a separate society
under the Societies Registration Act, 1860. It functions as an independent and autonomous
body , to monitor and assess the compliance with codes and minimum standards of service to
individual customers to which the banks agree to. The Code is a voluntary initiative by a bank
and is also a unilateral commitment by the bank to its individual customers to deal with them in
a transparent and fair manner in its day to day operations. RBI derives supervisory comfort in
case of banks which are members of the Board. Members of public can contact the BCSBI
either on its website or at its postal address. Website address: www.bcsbi.org.in
• The main function of the Board is to ensure adherence to the “Code of Bank’s Commitment
to Customers”. The Code is voluntary and sets minimum standards of banking practices for
banks to follow when they are dealing with individual customers in their day-to-day
operations. The Code is not only meant to provide protection to the individual customers but is
also expected to generate awareness in the common man about his rights as a consumer of
banking services.
• Banks are required to register themselves with BCSBI as members and have the Code adopted
by their respective boards. Thereafter, the banks will have to enter into a covenant with BCSBI,
binding them to monitoring by BSCBI as far as implementation of the code is concerned.

38. Any Scheduled Commercial Bank is eligible to become member of BCSBI. The Code
represents each member bank’s commitment to minimum standards of service to individual customers in
relation to products and services offered by the bank, e.g.
 Deposit accounts
 Safe deposit lockers
 Settlement of accounts of deceased account holders
 Foreign exchange services
 Remittances within India
 Loans and advances and guarantees
 Credit cards
 Internet banking
 In these areas the Code, inter alia, dwells upon
 Interest rates
 Tariff schedule

39.  Terms and conditions governing relationship between the bank and the customer
 Compensation for loss, if any, to the customer due the acts of omission or commission on the
part of the bank
 Privacy and confidentiality of the information relating to the customer
 Norms governing advertisements, marketing and sales by banks
 Every Member bank is required to:
 Have a Help desk/Helpline at the branch
 Have a Code Compliance officer at each Controlling office above the level of the branch.
 Display at each branch name and contact number of Code Compliance Officer.
 Display Name and address of the Banking Ombudsman
In case a customer is not provided services as promised in the Code, he can first
approach the help desk of the branch/bank. In case the issue is not resolved, the Code Compliance
Officer of the bank may be approached by the complainant. In case the issue is still not resolved
to the satisfaction of the customer he should take it up with the Banking Ombudsman .

40. THE BANKING OMBUDSMAN SCHEME
• The Banking Ombudsman Scheme enables an expeditious and inexpensive forum to bank
customers for resolution of complaints relating to certain services rendered by banks. The
Banking Ombudsman Scheme is introduced under Section 35 A of the Banking Regulation
Act, 1949 by RBI with effect from 1995. The Banking Ombudsman is a senior official
appointed by the Reserve Bank of India to redress customer complaints against deficiency in
certain banking services. As on date, fifteen Banking Ombudsmen have been appointed with
their offices located mostly in state capitals. The addresses and contact details of the Banking
Ombudsman offices have been provided in the annex. All Scheduled Commercial Banks,
Regional Rural Banks and Scheduled Primary Co-operative Banks are covered under the
Scheme.

41. Grounds of Complaints
• The Banking Ombudsman can receive and consider any complaint relating to the following
deficiency in banking services (including internet banking):
 non-payment or inordinate delay in the payment or collection of cheques, drafts, bills etc.;
 non-acceptance, without sufficient cause, of small denomination notes tendered for any
purpose, and for charging of commission in respect thereof;
 non-acceptance, without sufficient cause, of coins tendered and for charging of commission in
respect thereof;
 non-payment or delay in payment of inward remittances ;
 failure to issue or delay in issue of drafts, pay orders or bankers’ cheques;
 non-adherence to prescribed working hours ;
 failure to provide or delay in providing a banking facility (other than loans and advances)
promised in writing by a bank or its direct selling agents;

42.  delays, non-credit of proceeds to parties accounts, non-payment of deposit or non-observance of the
Reserve Bank directives, if any, applicable to rate of interest on deposits in any savings, current or other
account maintained with a bank ;
 complaints from Non-Resident Indians having accounts in India in relation to their remittances from
abroad, deposits and other bank-related matters;
 refusal to open deposit accounts without any valid reason for refusal;
 levying of charges without adequate prior notice to the customer;
 non-adherence by the bank or its subsidiaries to the instructions of Reserve Bank on ATM/Debit card
operations or credit card operations;
 non-disbursement or delay in disbursement of pension (to the extent the grievance can be attributed to
the action on the part of the bank concerned, but not with regard to its employees);
 refusal to accept or delay in accepting payment towards taxes, as required by Reserve
Bank/Government;
 refusal to issue or delay in issuing, or failure to service or delay in servicing or redemption of
Government securities;
 forced closure of deposit accounts without due notice or without sufficient reason;
 refusal to close or delay in closing the accounts;

43.  non-adherence to the fair practices code as adopted by the bank or non-adherence to the provisions of
the Code of Bank s Commitments to Customers issued by Banking Codes and Standards Board of India
and as adopted by the bank ;
 non-observance of Reserve Bank guidelines on engagement of recovery agents by banks; and
 any other matter relating to the violation of the directives issued by the Reserve Bank in relation to
banking or other services.
A customer can also lodge a complaint on the following grounds of deficiency in service with
respect to loans and advances
 non-observance of Rese– delays in sanction, disbursement or non-observance of prescribed time
schedule for disposal of loan applications;
 non-acceptance of application for loans without furnishing valid reasons to the applicant; and
 non-adherence to the provisions of the fair practices code for lenders as adopted by the bank or Code
of Bank’s Commitment to Customers, as the case may be;
 non-observance of any other direction or instruction of the Reserve Bank as may be specified by the
Reserve Bank rve Bank Directives on interest rates;
 for this purpose from time to time.

44.  The Banking Ombudsman may also deal with such other matter as may be specified by the
Reserve Bank from time to time.
There is no cost involved in filing complaints with Banking Ombudsman. The Banking
Ombudsman does not charge any fee for filing and resolving customers’ complaints.
Miscellaneous provisions
• The amount, if any, to be paid by the bank to the complainant by way of compensation for any
loss suffered by the complainant is limited to the amount arising directly out of the act or
omission of the bank or Rs 10 lakhs, whichever is lower.
• The Banking Ombudsman may award compensation not exceeding Rs 1 lakh to the
complainant only in the case of complaints relating to credit card operations for mental agony
and harassment. The Banking Ombudsman will take into account the loss of the complainant s
time, expenses incurred by the complainant, harassment and mental anguish suffered by the
complainant while passing such award.

45. Foreign Investment Promotion Board
(FIPB):
• Setting up of The Indian government has set up Foreign Investment Promotion
Board (FIPB). FIPB is the only agency in the country that deals with foreign
direct investments and investments into India.
• The main objective of Foreign Investment Promotion Board (FIPB) is to
encourage foreign direct investment into the country by taking up activities
that promote investment.
• The chairman of Foreign Investment Promotion Board (FIPB) is the Secretary
Industry of the Department of Industrial Promotion and Policy, government of
India.

46. Functions of Foreign Investment
Promotion Board (FIPB)
 To quickly approve the foreign investment proposals.
 To review the foreign direct investment policies and to communicate with other agencies such as the
Administrative Ministries in order to set up guidelines that are transparent and which encourage FDI
into the various sectors of the country.
 To look over the implementation of the various proposals that have been approved by it.
 To take up such activities that encourage FDI into the country such as establishing contact with
international companies and also inviting them to invest in India.
 To communicate with government, non- government, and Industry Bodies in order to increase the flow
of foreign direct investment into the country.
 To communicate with the Foreign Investment Promotion Council that has been set up in the Industry
Ministry.
 To identify the various sectors that require foreign direct investment.
 To take up all other activities that help in increasing the flow of foreign direct investment into the
country.