Saturday, April 4, 2015

Postal Bank of India

Postal Bank of India

The government is to set up a Postal Bank of India by utilizing its 1,55,000 Post Offices across the country. Though the final structure is yet to decide, but it seems Postal banks will have a distinct structure from other Payment Banks and will compete with universal banks.

RBI Governor's speech at 80th anniversary of RBI

"In the coming year, we will have many new players in the banking eco-system, such as payment banks, small finance banks and possible a postal bank competing with existing universal banks, regional rural banks, cooperative banks, and a variety of non-bank finance companies", said RBI governor R. Rajan, outlining the developments in the central bank at an event to commemorate RBI's 80th anniversary.

Expected Structure

  • The government is planning a non-payments bank structure for Postal Bank of India
  • This will leverage the Postal Department's real estate infrastructure, vast distribution network (1,55,000 Post Offices across the country)
  • It will also facilitate Financial Inclusion plan

Note that the Postal Department has already applied for a payments bank licence after RBI initiated the licensing process last year. But it is expected that if it gets licence, Postal Bank will be a non-payments bank, or universal bank.

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IBPS SO IV Written Score

IBPS SO IV Written Score

IBPS has declared Specialist Officers (SO IV) written marks for candidates called for interview. 

Visit the direct link of IBPS SO IV Marks -
Click here

IT Officer Scale - I Cutoff

English - 12 / 50
Professional Knowledge (IT) - 14 / 50
Reasoning - 13 / 50
Quantitative Aptitude - 8 / 50

Total - 104 / 200

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Friday, April 3, 2015

Open Market Operations (OMO)

Open Market Operations (OMO)
If the central bank of a country, on behalf of the government, raises money from the open market by selling government securities, or inject money supply in the market by purchasing the government securities, then it will be known as Open Market Operations (OMO).

Note the term Open Market Operations: it simply means operations (selling/buying government securities) performed in the Open Market. OMO performs a major role in Monetary Policy.

In India, Reserve Bank of India (RBI), on behalf of Union government, performs this Open Market Operation.

Purpose of OMO

  • Adjust the liquidity condition in the market on a durable basis -
    a.  If there is excess liquidity in the market - RBI will sale the government securities, thereby sucking out the rupee liquidity
    b.  If the liquidity conditions are tight (i.e., less liquidity) - RBI will buy the government securities from the market, thereby releasing liquidity into the market
  • Government raises money from the market, when it needs money for governance purpose.

Government Securities
There are several government securities with different maturity dates, which are used for different purposes, as follows -
  • Treasury Bills (T-Bills)
  • Cash Management Bills (CMBs)
  • Dated Government Securities
  • State Development Loans (SDLs)
All these government securities are discussed in past article - Click here

RBI on November 2014, announced to sell Rs. 12,000 crore government securities/bonds through Open Market Operations (OMO) to mop up liquidity from the market.

As part of the OMO, RBI would sell securities maturing in 2017 (bearing interest rate of 8.07 %), 2020 (7.8 %), 2022 (8.08 %) and 2027 (8.26 %).

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Thursday, April 2, 2015

Mission IBPS PO/Clerk V (2015-16)

IBPS PO IV and Clerk IV for 2014-15 is now over! Congrats to those who have cleared the exams. Those who have missed this time should not loose hope! Your hard work will pay off for sure.
For the new candidates, start working hard from now. Hope all of you will succeed in your maiden attempt!

Mission IBPS PO/Clerk V (2015-16)
Now its time for Mission IBPS PO/Clerk V (2015-16). Here we are providing you a comprehensive Study Guide for Banking Awareness section. You can follow the Study Plan, along with the Current Affairs provided on daily basis to get maximum marks from these sections (Of course, these will help you a lot in Interviews)

This Study Plan is solely based on Banking Awareness section, and will continue for approx. 3 months. A timetable is created for your daily study (Sundays off), with specified topics. The topics are discussed in Bankoncepts site (links will be provided).
You just need to go through the topic on that day, and answer some basic questions, if any. An hour a day is sufficient for this program.

Our goal is to make you fully capable of answering most of the questions in banking awareness section (both written and interviews) correctly, in the upcoming banking exams (e.g., IBPS, SBI, etc.).

Current Affairs Section will be regularly updated as usual.
Hope you will appreciate our efforts! Feel free to share your views..

Start Date - April 13, 2015 (Monday)
Period - approx. 3 months

Register here to get Study Plan for Banking Awareness section (free registration).
Note that free registration is required for now, so that only serious candidates avail the facility.

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IBPS PO & Clerk IV Cutoffs

IBPS PO & Clerk IV Cutoffs

PO (all India) 49.6 45.6 42.2 36.4
PO Reserve List 49.2 45.2 42 36
Clerk (State-wise)
Andaman & Nicobar 44.4 40.4 - -
Andhra Pradesh 72.8 69.2 63.6 54
Arunachal Pradesh 52.6 - - 50.2
Assam 67.2 60.8 62.2 55.8
Bihar 69 65.8 54.2 47.2
Chandigarh 71.2 60 60.8 -
Chattisgarh 66.6 66.2 53.4 40
Dadra & Nagar Haveli 49.6 - - -
Daman & Diu 49.4 47.6 - -
New Delhi 70.6 65 59.6 42.6
Goa 42.4 50.2 - 33.2
Gujarat 60.2 54.2 55.6 30.4
Haryana 69.4 65.4 54.8 -
Himachal Pradesh 69.6 60.6 57.8 59.8
Jammu & Kashmir 68.8 55.4 54.8 51.8
Jharkhand 68.8 67.2 56.8 48.4
Karnataka 55 49.8 43.8 31.6
Kerala 73.6 70 59.2 52.2
Lakshadweep - - - 39.2
Madhya Pradesh 69 64 55.6 28.8
Maharashtra 61.2 56 57.2 31.2
Manipur 60.8 75.2 - 59.4
Meghalaya 55.8 - - 52.4
Mizoram 59.6 - - 53.2
Nagaland 53.4 - - 51.4
Odisha 71.8 69 57.8 45.4
Puducherry 62 60 59.6 -
Punjab 70.4 58.8 52.4 -
Rajasthan 69.6 65.4 54.8 46.8
Sikkim 65.2 60.4 - 56.2
Tamil Nadu 65.4 62.8 54.8 48.4
Telangana 69.2 66 58.4 55.8
Tripura 68.4 - 57.6 41.2
Uttar Pradesh 68.2 62.2 54.2 46.8
Uttarakhand 69.2 62.8 55.2 55.6
West Bengal 73 61.6 59.6 48.4

Note that this list of cutoffs for IBPS PO and Clerk IV is compiled from IBPS notification, and we tried to keep the list error free, while copying. If you find any error in this list, please notify us. 

Also note that Clerk Reserve List is not compiled in this list.

Original Links

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Wednesday, April 1, 2015

IBPS PO/Clerk IV Result

IBPS PO IV Final Result Declared

Friends IBPS has declared the final result (Written+Interview combined) today, i.e., April 1, 2015. Check your result in the following link.

Click me

IBPS PO IV Vacancy

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Tuesday, March 31, 2015

Cooperative Banks

In normal commercial banking, the banking business is owned or maintained by government (in case of Public Sector Banks) or some private entity (in case of Private Sector Banks). In this case, banks, on behalf of government or that private entity, lends to other individuals or business, i.e., borrowers. The sole purpose of this commercial banking is profit.

But in case of cooperative banking, some small private entities or individuals come together, and form a small financial institution (by their own funds / member funds), and lend to the members of that institution. Note that the banking business here is on cooperative basis, i.e., one member is helping / lending to other member (now they do lend to non-member individuals or entities as normal banks). These financial institutions are known as Cooperative Banks.

Purpose of Cooperative Banks
Initially, cooperative banks were set up to meet the credit needs in rural area, especially to prevent money lenders, but now they have vast area of services as follows -
  • Agricultural and allied activities
  • Rural-based industries
  • Small trade and industry in Urban areas, etc.

Structure of Indian Cooperative Banks
Cooperative banks in India have a 3-tier structure -

  • Primary Credit Societies (village/town/urban centers) 
  • Central Cooperative Banks (district-level)
  • State Cooperative Banks (state-level)

Urban Cooperative Banks (UCBs)
Primary (urban) Credit Societies that meet certain criteria can apply to RBI for a banking license to operate as Urban Cooperative Banks (UCBs)
  • Managerial aspects, like registration, management, recruitment, administration, etc. are controlled by Registrar of Cooperative Societies (RCS) of the respective state governments (as per Co-operative Societies Acts)
  • Banking aspects are governed by RBI (as per Banking Regulation Act, 1949)

These banks cater to the needs of small borrowers including retail traders, small entrepreneurs, professionals, salaried persons, etc.

District Central Cooperative Banks (DCCB)
DCCBs are cooperative banks at the district-level. Each district generally will have only one DCCB. Following the establishment of NABARD in 1982, the supervisory function of these banks has been passed on to NABARD.

State Cooperative Banks (SCB)
SCBs are cooperative banks at the state-level. A number of DCCBs report to an SCB. NABARD has the supervisory authority over these SCBs.

Note that DCCB and SCB has three supervisors - RCS, RBI and NABARD, whereas UCBs are controlled by RCS and RBI.

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Monday, March 30, 2015

IRNSS-1D Satellite

ISRO's Polar Satellite Launch Vehicle - 27 (PSLV C-27) (rocket) successfully launched Indian Regional Navigation Satellite System 1-D (IRNSS-1D) into the orbit. With this launch, India is poised to operationalize the Indian regional navigation satellite system.

Whereas the Global Positioning System (GPS) of USA has global coverage, the IRNSS is meant for regional coverage. ISRO chairman A.S.Kiran Kumar said, "We will now be able to make use of our receivers to locate ourselves independently."

Note that IRNSS-1D is the 4th of the series of 7 satellites, which would form ISRO's IRNSS.

The launch of IRNSS

  • Launched by - Polar Satellite Launch Vehicle (PSLV-C27)
  • From - Satish Dhawan Space Center, Sriharikota
  • At - 5:19 PM
  • Orbit - Sub-geostationary orbit
  • Weight - 1,425 kg
  • Flight time -20 minutes
  • Project cost - Rs. 1,420 crore

Indian Regional Navigation Satellite System (IRNSS) coverage
It is a GPS-like regional satellite-based navigation system, developed by ISRO. Other navigation satellites, like -

  • Global Positioning System (GPS) (USA)
  • GLONASS (Russia)
  • Galileo (European Union)
  • Beidou Navigation Satellite System (BDS) (China)
- have global coverage, whereas IRNSS will focus on the region - up to 1,500 km beyond Indian border, between longitude 40° E and 140° Eand latitude ± 40°. 

Ground Infrastructure
A total 20 stations for generation and transmission of navigation parameters, satellite control and monitoring, mostly at airports, along with India GPS Aided Geo Augmented Navigation (GAGAN) ground elements. IRNSS will also have 2 Master Control Stations.

Application of IRNSS
  • Terrestrial, aerial and marine navigation
  • Disaster management
  • Vehicle tracking and fleet management
  • Integration with mobile phones
  • Mapping and geodetic data capture
  • Use in military, etc.

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