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# Gk capsule for sbi exam

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### Gk capsule for sbi exam

1. 1.   www.bankersadda.com           |              www.careerpower.in              |              www.careeradda.co.in    GK CAPSULE FOR SBI PO 2014 Exam Current RBI Policy & Reserve Rates: Repo Rate 8% (Unchanged) Reverse Repo 7% (Unchanged) CRR 4% (Unchanged) SLR 23% (Unchanged) MSF 9% (Unchanged) Bank Rate 9% (Unchanged) Note: As on 1 April 2014, RBI (Reserve Bank of India) in its first bimonthly monetary policy statement kept the key policy rate (repo) unchanged. About Policy Rates 1. Basis points: It is the increase in interest rates in percentage terms. For instance, if the interest rate increases by 50 basis points (bsp), then it means that interest rate has been increase by 50%. One percentage point is broken down into 100 basis points. Therefore, an increase from 2% to 3% is an increase of one percentage point or 100 basis points. 2. CRR: Cash reserve Ratio (CRR) is the amount of funds that the banks have to keep with RBI. If RBI decides to increase the percent of this, the available amount with the banks comes down. RBI is using this method (increase of CRR rate), to drain out the excessive money from the banks. The current rate is 4%, which means for a cash deposit of Rs. 100, the bank has to park 4 rupee with the central bank. 3. Repo rate: Repo rate is the policy rate and is part of RBI’s Liquidity Adjustment Facility (LAF). It is the rate at which commercial banks borrow from the RBI by selling their securities or financial assets to the RBI for a short‐period of time. It comes with an agreement that the sold securities will be repurchased by the commercial banks from the RBI at a future date at predetermined price. The repo rate is used by the central bank to increase liquidity in the system. 4. Reverse repo rate: Reverse Repo Rate is also a part of LAF. It is the rate of interest at which the central bank borrows funds from other banks for a short duration. The banks deposit their short term excess funds with the central bank and earn interest on it. This rate is used by the central bank to absorb liquidity from the economy. Generally it is one percentage less than the Repo rate. 5. Bank rate: The only way the bank rate is different from the repo rate is that the bank rate is the rate at which banks borrow money from the central bank without any sale of securities. It is generally for a longer period of time 6. Marginal Standing Facility: The Reserve Bank of India in its monetary policy for 2011‐12 introduced the marginal standing facility under which banks could borrow funds from RBI when there is a considerable shortfall of liquidity. This measure has been introduced by RBI to regulate short‐term asset liability mismatches more effectively. Under this facility, banks can borrow up to 1% of their net demand. This GK Capsule has been prepared by Career Power Institute Delhi (Formerly Known as Bank Power). This document consists of all important news and events of last few months which can come in SBI PO Exam.
4. 4.   www.bankersadda.com           |              www.careerpower.in              |              www.careeradda.co.in    FDI Limits Sr no. List of Limits in Various Sectors (In %) 1. Defence 26 2. Pension 49 3. Insurance 49 4. Print Media 26 5. Civil Aviation 49 6. Public Sec. Banks 20 7. Private Sec. Banks 74 8. Multi Brand 51 9. Single Brand 100 10. Tourism 100 India GDP Forecast:  RBI pegged 2014‐15 GDP growth at a central estimate of 5.5 %  World Bank lowers India’s GDP growth forecast for 2014‐15 at 5.7 %  ADB pegs India GDP growth rate for 2014‐15 at 5.5 %  IMF projected GDP growth for India in 2014‐15 at ‐ 5.4 % India ranking in different Indexes for 2013 ‐ 14: 1. Global Environment Performance Index 2014 – 155 2. Intellectual property (IP) environment 2014 – 25 (US ranked on the top followed by UK and France) 3. World Press Freedom Index 2014 ‐ 140 in the list of 180 countriess 4. Nuclear material security index 2014 ‐ 23rd out of 25 countries 5. World's best countries for doing business 2014 ‐ 98th (Ireland topped the list). 6. Social Progress Index 2014: 102 out of 132 7. Global Hunger Index 2013 ‐ 63 8. World Prosperity Index 2013 – 106. Norway tops the list. 9. Global Gender Gap Report 2013 ‐ 101. Iceland tops the list. 10. Global Peace Index 2013 – 141 11. Human Development Report 2013 – 136 12. Global Corruption Index 2013 – 94 13. Global Competitiveness Index 2013 ‐60 for 2013 (Switzerland top in this report) 14. Gender Inequality Index 2013 ‐ 132nd (UN Human Development (Index) Report) Some Important Economic Terms: 1. Bond: A certificate of debt (usually interest‐bearing or discounted) that is issued by a government or corporation in order to raise money; the bond issuer is required to pay a fixed sum annually until maturity and then a fixed sum to repay the principal. 2. Balance sheet: Record of the financial situation of an institution on a particular date by listing its assets and the claims against those assets. 3. Balance of trade ‐ The part of a nation's balance of payments that deals with merchandise (or visible) imports or exports. 4. Closed economy: A closed economy is one in which there are no foreign trade transactions or any other form of economic contacts with the rest of the world. 5. Deflation: Deflation is the continuous decrease in prices of goods and services. Deflation occurs when the inflation rate becomes negative (below zero) and stays there for a longer period. 6. Debenture: Debenture is a loan issued by a firm, involving g a fixed repayment schedule, in terms of both time and interest. 7. Debit: Money paid out from an account either from a withdrawal or a transaction that result in decreasing the cash balance. 8. Equity: Equity is a one financial instrument by which company invite the public to invest their money in the company and investor can become a partner of the company. Generally, when the company have insufficient money to expand its business it comes with equity shares. 9. Economic growth ‐ An increase in the total output of a nation over time. Economic growth is usually measured as the annual rate of increase in a nation's real GDP 10. Excise Tax ‐ Taxes imposed on specific goods and services, such as cigarettes and gasoline. 11. Exports ‐ Goods or services produced in one nation but sold to buyers in another nation.
6. 6.   www.bankersadda.com           |              www.careerpower.in              |              www.careeradda.co.in    15. K U.B. Rao : the idea of setting up Bullion Bank or Bullion Corporation of India 16. C Rangarajan Panel ‐ recommended the pricing of natural gas by a complex methodology of arriving at an average of International gas hub prices. 17. Arvind Mayaram Panel: report on the alleged irregularities at the National Spot Exchange Ltd (NSEL) 18. Arvind Mayaram Committee –for giving clear definitions to Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) 19. Suma Verma Committee ‐ to update, and revise the Banking Ombudsman Scheme, 2006 20. Damodran Committee: on improvement of customer services in banks 21. Shri M. Narasimham Committee: on Banking Sector Reforms 22. Shri Raghuram Rajan Committee: on Financial Sector Reforms, 23. Shri B. Mahapatra Committee: to review the existing prudential guidelines on restructuring of advances by banks/financial institutions 24. Shri Aditya Puri Committee: Dissemination of Credit Information 25. Shri K.U.B. Rao Committee: recommended aligning gold import regulations 26. K M Chandrasekhar committee : for rationalization of foreign investment norms 27. Shri Pulak Kumar Sinha Committee: to study the feasibility of Aadhaar as an additional factor for authentication of card present transactions 28. Mukul Mudgal Committee: looking into US giant Walmart's lobbying activities to enter India 29. MBN Rao Committee: to prepare the blueprint of India’s first women’s bank 30. JS Mathur committee : to revise Newspaper Advertisement Rates. 31. K. Ratna Prabha : Committee on indecent depiction of women in media News Related to Banking & Finance 1. India recently launched its own payment gateway 'RuPay', equivalent of Visa and Mastercard, which will work on ATMs and merchant outlets and help in reducing cash transactions. Note: i. RuPay, which works on three channels ‐‐ ATMs, Point of Sales (POS) and online sales, is the seventh such payment gateway in the world. ii. The RuPay platform ‐‐ developed by National Payments Corporation of India (NPCI)‐‐ is being used by certain banks like ICICI, State Bank of India, Punjab National Bank, among others, for clearing and settlement. 2. India became third‐largest economy in 2011 from 10th in 2005: World Bank. 3. Note: India emerged as the world’s third‐largest economy in 2011 from being the 10th largest in 2005, moving ahead of Japan, while the US remained the largest economy closely followed by China, latest figures have revealed. 4. Govt accepts Sahoo panel report on review of depository receipts scheme. The key recommendations of the committee include allowing issuance of depository receipts against any underlying securities — equity or debt, by any issuer ‐ listed or unlisted. Note: Depository receipts are receipts denominated in foreign currency created by a depository in the country of listing. There are two popular types of depository receipts — global depository receipts and American depository receipts.