BANKING AWARENESS-GROSS DOMESTIC PRODUCT
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What is GDP? Gross Domestic Product (GDP) is the market value of all final goods and services produced within a country in a given period of time. GDP is the basic measure of the country’s economic performance over a given period. GDP is measured by three basic approaches 1. Expenditure approach 2. Income approach 3. Value based approach Types of GDP: *Real GDP *Nominal GDP Real GDP is the production of goods and services valued at constant prices whereas nominal GDP is the production of goods and services valued at current prices. But why we need to measure both real and nominal GDP?
Now when the total spending increases in a given period i t points towards two happenings, either the goods or services are sold at higher prices (i .e inflation has increased) or the total output of goods and services have increased. While studying economy, economist tries to separate these two effects. Hence they measure the real GDP which allows them to find whether production of goods and services has increased or decreased over the periods.
Components of GDP:
GDP is a variable which depends upon four other variables. These variables form components of GDP
GDP = C+I+G+NX
C= total consumption
I = gross investment
G= Government spending
NX= exports less imports
Consumption is spending by households on goods and services. Here we do not include purchase of new housing.Investment is spending on inventories. Equipments and purchase of new housing Government spending includes spending on goods and services by state and central government Net exports spending on the domestic products by foreigners less spending on foreign products by locals.
All Information about RuPay and RuPay Cards (RuPay ATM, RuPay MicroATM, Debit, Prepaid and Credit Cards) Short Notes of RuPay: RuPay is the Indian domestic card payment network set up by National Payments Corporation of India (NPCI) at the behest of banks in India. The RuPay project had been conceived by Indian Banks Association (IBA) and had the approval of Reserve Bank of India (RBI).National Payments Corporation of India (NPCI) has a plan to provide a full range of card payment services including the RuPay ATM, RuPay MicroATM, Debit, Prepaid an Credit Cards which will be accepted in India and abroad, across various channels like POS, Internet, IVR and mobile etc. The initial focus of NPCI would be to approach those banks who have not been issuing any payment card at all more specifically – Regional Rural Banks (RRBs) and urban co-operative banks.All Public Sector Undertakings (PSU) banks set to join RuPay system by the end of year 2012. RuPay-based debit cards can be used by the consumers on the Internet from September, 2012.The government of India had launched India’s first domestic payment card network, RuPay, to compete with Visa Inc and Mastercard Inc. Objectives of RuPay: The Main Objective of the RuPay payment network project is to reduce the overall transaction cost and develop products appropriate for financial inclusion. *Reduce overall transaction cost for the banks in India by introducing competition to international card schemes. *Develop products appropriate for the country particularly for financial inclusion. *Provide card payment service option to many banks who are currently not eligible for card issuance under the eligibility criteria of international card schemes. *Build environment whereby payment information of the country remains within the country Shift Personal Consumption Expenditure (PCE) from cash to electronic payments in a growing economy with a population of 1.2 billion. Important Points to Remember: RuPay is the Indian domestic card payment network.The RuPay payment network set up by National Payments Corporation of India (NPCI) at the behest of banks in India.The RuPay project had been conceived by Indian Banks Association and had the approval of Reserve Bank of India.The main objective of RuPay project is to reduce overall transaction cost for the banks in India by introducing competition to international card schemes.NPCI has plan to provide full range of credit service like RuPay ATM, RuPay MicroATM, Debit,Prepaid and Credit Cards which will be accepted across various channel POS, Internet, IVR, Mobile etc.Al l state-owned banks are expected to join the RuPay system by the end of this year.RuPay-based debit cards can be used by the consumers on the Internet from September, 2012. Nair Committee Report on Priority Sector Lending: The Reserve Bank of India, the central bank of India, on February 21, 2012 has released the report of the Committee (Chairman: M V Nair, Chairman, Union Bank of India) constituted to re-examine the existing classification and suggest revised guidelines with regard to priority sector lending and related issues.The Reserve Bank India had constituted the Committee under the chairmanship of M.V. Nair on August 25, 2011 pursuant to the announcement made in the Monetary Pol icy Statement 2011-12. The Major Recommendations of the Nair Committee are: The sector ‘agriculture and allied activities’ maybe a com posite sector within priority sector, by doing away with dis tinction between direct and indirect agriculture. The targets for agriculture and allied activities may be 18 per cent of Adjusted Net Bank Credit (ANBC) or credit equivalent of off-balance sheet exposure (CEOBE), whichever is higher.A sub target for small and marginal farmers within agriculture and allied activities is recommended,equivalent to 9 percent of ANBC or CEOBE, whichever is higher to be achieved in stages by 2015-16.The MSE sector may continue to be under priority sector. Within MSE sector, a sub target for micro enterprises is recommended equivalent to 7 percent of ANBC or CEOE, whichever is higher to be achieved in stages by 2013-14.The priority sector targets for foreign banks may be increased to 40 percent of ANBC or CEOBE,whichever is higher with sub-target of 15 percent for exports and 15 percent for MSE sector, within which 7 percent may be earmarked for micro enterprises. Bank loans to non-bank financial intermediaries for on lending to specified segments may be al lowed to be reckoned for classification under priority sector, up to a minimum of 5 percent of ANBC or CEOBE, whichever is higher, subject to certain due diligence and documentation standards.
CANARA BANK -IMPORTANT POINTS
Ammembal Subba Rao Pai established Canara Hindu Permanent Fund in Mangalore, India, on 1 July 1906.In 1910 the Bank changed it’s name to Canara Bank Limited.Canara Bank Limited was incorporated in 1990.In 1958, the Reserve Bank of India ordered Canara Bank to acquire G. Raghumathmul Bank, in Hyderabad.G.Raghumathmul Bank was established in 1870 and converted into limited company on 1925. G. Raghumathmul Bank had five branch at the time of acquisition.On 19 July 1969 government of India nationalised Canara Bank Limited and i t renamed as Canara Bank after nationalization.In 1976, Canara Bank inaugurated i ts 1000th branch.In 1996 Canara Bank became the fi rst Indian Bank to get ISO certi fication for “Total Branch Banking” for i ts Seshadripuram branch in Bangalore.In 2005 Canara Bank achieved 100% Branch computerization.In 2006 Canara Bank entered 100th Year in Banking Service.
PUNJAB NATIONAL BANK – Important Points
On 19 May 1894 Punjab National Bank was registered under Act VI of Indian Companies Act 1882. Punjab National Bank (PNB) was established in Lahore in 1895 (12 April , 1895).Headquarters of Punjab National Bank is located in New Delhi , India.Present Chairman & MD of Punjab National Bank is K R Kamath.Fi rst Chai rman & MD of Punjab National Bank was Sardar Dyal Singh Majithia.At the time of nationalisation the Chairman and MD of Punjab National Bank was Somesh Chandra Trikha.Punjab National Bank is one of the four largest bank in India and second largest publ ic sector bankin India.The first bank purely managed by Indian was Punjab National Bank.In 1940 PNB absorbed Bhagwan Dass Bank, a scheduled bank located in Delhi Circle.In 1951 Punjab National Bank acquired the 39 branches of Bharat Bank (est. 1942) and Bharat Bank became Bharat Nidhi Ltd.In 1961 Punjab National Bank acquired Universal Bank of India.In 1962, PNB amalgamated the Indo-Commercial Bank withit.In 1986 Punjab National Bank (PNB) acquired Hindustan Commercial Bank (est. 1943) in a rescue.In 1993 Punjab National Bank (PNB) acqui red New Bank of India, a bank which was national ised in 1980 by Govt. of India. In 2003 Punjab National Bank took over Nedungadi Bank, the oldest private sector bank in Kerala. Punjab National Bank was ranked 1243 in the Forbes Global 2000.Punjab National Bank has more than 5100 offices including 5 overseas branches.PNB receives Best Bank Award-2011 PNB receives the FIBAC 2011 ‘Most Productive Public Sector Bank award.Present Slogan of PNB – The Name you can Bank Upon.
ALLAHABAD BANK-Important Points
Allahabad Bank started operation in 1865.The head-quarters of Allahabad Bank is in in Kolkata.Al lahabad Bank has a network of 2500 branches across the country.Chai rman and Managing Director of the bank is Shri J. P. Dua.In 24 Apri l 1865 A group of Europeans at Al lahabad founded Al lahabad Bank.In 19 July 1969 The Indian Government national ized Al lahabad Bank, together wi th 13 other banks.In October 1989 Al lahabad Bank acqui red Uni ted Industrial Bank which was establ ished in 1940.Al lahabad Bank establ ished Al lBank Finance Ltd in 1991. It is a whol ly owned Merchant Banking subsidiary.In October 2002 Al lahabad Bank came out wi th an Ini tial Publ ic Offering (IPO) that reduce government holding in this bank to 77.16%. In June 2006 Allahabad Bank opened its first office outside India when i t opened a representative office in Shenzen, China. In February 2007 Allahabad Bank opened its first overseas branch, in Hong Kong.
BANK OF BARODA-Important Points
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