how to read EPW.
When will this form cum?
When the rbi grade b notification will come?
For phase 2 :Optional paper(paper 3) which one to choose to increase the scoring ,or what paper u ppl r selecting .Below are the options ;
Finance & Management/ Economics/ Statistics
PS - SOMEONE POSTED THIS ON FB GROUP
Rbi Notification date : 5th oct ; Prelims will be held on 21 & 22 nov and mains on 7&8 December 2015
anyone here from pune ??? Need advice regarding pankaj Gandhi's aptitude classes... For RBI prelims
Had a conversation with HR guys of RBI. Apparently, discussion is over in the matter of eligibility criteria. Analysed data has been send to higherups for final decision which will happen in a day or two.
Notification is being expected prior to 10th of October. Seats are expected to be a bit higher than last year.
If the output of discussion is positive, it will be good for people below 60% marks in the sense that they will get a chance to appear in exam. Else, one must realize that RBI is not the last employer on earth and employment is not the last purpose of life.
where to study social issues from?
Poverty Alleviation and Employment Generation in India
Introduction:
Poverty in India is widespread, and a variety of methods have been proposed to measure it. The official measure of Indian government, before 2005, was based on food security and it was defined from per capita expenditure for a person to consume enough calories and be able to pay for associated essentials to survive. Since 2005, Indian government adopted the Tendulkar methodology which moved away from calorie anchor to a basket of goods and used rural, urban and regional minimum expenditure per capita necessary to survive.
The World Bank has similarly revised its definition and benchmarks to measure poverty since 1990, with $1.25 per day income on purchasing power parity basis as the definition in use from 2005 to 2013. Some semi-economic and non-economic indices have also been proposed to measure poverty in India; for example, the Multi-dimensional Poverty Index placed 33% weight on number of years spent in school and education and 6.25% weight on financial condition of a person, in order to determine if that person is poor.[3]
The different definitions and different underlying small sample surveys used to determine poverty in India, have resulted in widely different estimates of poverty from 1950s to 2010s. In 2012, the Indian government stated 21.9% of its population is below its official poverty limit. The World Bank, in 2011 based on 2005's PPPs International Comparison Program,[5] estimated 23.6% of Indian population, or about 276 million people, lived below $1.25 per day on purchasing power parity. According to United Nation's Millennium Development Goal (MGD) programme 270 millions or 21.9% people out of 1.2 billion of Indians lived below poverty line of $1.25 in 2011-2012.
Poverty in India is a historical reality. From late 19th century through early 20th century, under British colonial rule, poverty in India intensified, peaking in 1920s.Famines and diseases killed millions each time. After India gained its independence in 1947, mass deaths from famines were prevented, but poverty increased, peaking post-independence in 1960s. Rapid economic growth since 1991, has led to sharp reductions in extreme poverty in India.However, those above poverty line live a fragile economic life. Lack of basic essentials of life such as safe drinking water, sanitation, housing, health infrastructure as well as malnutrition impact the lives of hundreds of millions.
The World Bank reviewed and proposed revisions in May 2014, to its poverty calculation methodology and purchasing power parity basis for measuring poverty worldwide, including India. According to this revised methodology, the world had 872.3 million people below the new poverty line, of which 179.6 million people lived in India. In other words, India with 17.5% of total world's population, had 20.6% share of world's poorest in 2011
Defintion:A state or condition in which a person or community lacks the financial resources and essentials to enjoy a minimum standard of life and well-being that's considered acceptable in society. Poverty status in the United States is assigned to people that do not meet a certain threshold level set by the Department of Health and Human Services.
Top 10 facts about Poverty in India
1. India is estimated to have one-third of the world's poor.
2. In 2012, 37 percent of India's 1.21 billion people fell below the international poverty line, which is $1.25 a day, according to the Indian Planning Commission.
3. According to 2010 World Bank data, India's labor participation rate (for those individuals over the age of 15) totaled 55.6 percent; however, the percent of wage and salaried workers of those employed only equaled about 18.1 percent.
4. According to the World Health Organization, it is estimated that 98,000 people in India die from diarrhea each year. The lack of adequate sanitation, nutrition and safe water has significant negative health impacts.
5. Families can't grow enough crops to feed themselves each year due to the lack of new farming techniques, difficult weather conditions, poor storage conditions, misuse of insecticides and lack of water.
6. A third of the world's malnourished children live in India according to UNICEF, where "46 percent of all children below the age of three are too small for their age, 47 percent are underweight and at least 16 percent are wasted."
7. India has the highest rate of child marriage in the world, where one in three girls become child brides. Many girls are married off at an early age, become servants or even prostitutes just to survive.
8. The poorest parts of India are Rajasthan, Madhya Pradesh, Uttar Pradesh, Bihar, Jharkhand, Orissa, Chhattisgarh and West Bengal.
9. According to the World Bank, in 2009 an estimated 2.4 million were living withHIV/AIDS, with children (less than 15-years-old) accounting for 3.5 percent and 83 percent making up the age group 15-49 years. Around 39 percent of those infected were women.
10. Men are more than twice as likely as women to hold salaried jobs in the large and medium-sized towns that are increasingly important centers of economic life in the Indian countryside. As such, in 2013 women only earned 62 percent of a men's salary for equal work.
The expert committee set up by the Planning Commission last year under C Rangarajan, former chairperson of of Prime Minister's Economic Advisory Council, has redefined the poverty line. According to the report of the committee, the new poverty line should be Rs 32 in rural areas and Rs 47 in urban areas. The earlier poverty line figure was Rs 27 for rural India and Rs 33 for Urban India
Poverty indicators
Number of rural poor (million, approximate) (2014)220,299,003.7Rural poverty headcount ratio at national poverty lines (% of rural population) (2011)25.7Poverty headcount ratio at national poverty lines (% of population) (2011)21.9Income share held by lowest 20% (2009)8.5
Poverty indicators
| Number of rural poor (million, approximate) (2014) | 220,299,003.7 |
| Rural poverty headcount ratio at national poverty lines (% of rural population) (2011) | 25.7 |
| Poverty headcount ratio at national poverty lines (% of population) (2011) | 21.9 |
| Income share held by lowest 20% (2009) | 8.5 |
Kindly suggest me which materials or sources must be followed for the following subjects.
Phase 1: General Awareness
Phase2: English(Writing skills), Economic and social issues, Finance and Management.
I have already gone through the list of materials given on RBI website but couldn't decide on what to study.
Any help would be much appreciated! 😃
P.S. A commerce graduate.
Whatever we can prepare for the Phase 2 the exam ll be totally different...because of mcq pattern..friends anybody can share ur thoughts regarding question bank for the syllabus...
Hi. I am ganesh. According to revised rules am I eligible for RBI grade b exam or not? I have above 60% in MCA but have below 60% in 12th and degree . can u clarify on this? Thank u
Anyone choosing Economics or Statistics for optional paper here?
I am sorry for the late reaction....but mcqs intead of discriptive.....how are they going to do this. How should we study....Will the MCQs in phase 2 be fact based or indepth knowledge based...any thoughts puys .....
When will be the forms out?
What is the difference between repo and repo rate??
As I know that Repo rate is the interest rate charged by the RBI on Banks for borrowing loan from it by keeping some Govt. sec as collateral.
I did not get the concept of repo.
I read in mrunal article that repo example as
example-
I'm the RBI manager.
· When I give you security (paper) & take money from you - this is Repo.
· When I buy the security (paper) from you and give you money- this is reverse Repo.
My question is if repo and repo rate are same then In above example it should be in other way.
Please clarify
TIA
How to prepare for Phase-2? Which books can we refer for MCQ type questions of Economics or Finance? any sample papers available anywhere?
SMALL BANKS AND PAYMENT BANKS
In order to expedite financial inclusion, finance minister Arun Jaitley in his budget speech said "RBI will create a framework for licensingsmall banks and other differentiated banks.
Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force."
Within a week of the budget, RBI issued draft guidelines for setting up small banks and payment banks. RBI in its guidelines said that both payment banks and small banks are 'niche' or differentiated banks, with the common objective of furthering financial inclusion.
Following are some of the conditions which are common to both the banks:
The minimum capital requirement would be Rs 100 crore
- Promoter contribution would be at least 40 per cent for the first five years. Excess shareholding should be brought down to 40 per cent by the end of fifth year, to 30 per cent by the end of 10th year and to 26 per cent in 12 years from the date of commencement of business
- Foreign shareholding in these banks will be as per current FDIpolicy
- Voting rights to be line with the existing guideline for private banks
- Entities other than promoters will not be permitted to have shareholding in excess of 10 per cent.
- The bank should comply with the corporate governance guidelines, including 'fit and proper' criteria for Directors as issued by RBI
- Operations of the bank should be fully networked and technology driven from the beginning
Small Banks
- The purpose of the small banks will be to provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation.
- The objective for these Small Banks is to increase financial inclusion by provision of savings vehicles to under-served and unserved sections of the population, supply of credit to small farmers, micro and small industries, and other unorganised sector entities through high technology-low cost operations.
- Resident individuals with 10 years of experience in banking and finance, companies and Societies will be eligible as promoters to set up small banks. NFBCs, micro finance institutions (MFIs), and Local Area Banks (LABs) can convert their operations into those of a small bank. Local focus and ability to serve smaller customers will be a key criterion in licensing such banks.
- Branch expansion: For the initial three years, prior approval will be required.
- The area of operations would normally be restricted to contiguous districts in a homogenous cluster of states of union territories so that the Small Bank has a 'local feel' and culture. However, if necessary, it would be allowed to expand its area of operations beyond contiguous districts in one or more states with reasonable geographical proximity.
- The bank shall primarily undertake basic banking activities of accepting deposits and lending to small farmers, small businesses, micro and small industries, and unorganised sector entities. It cannot set up subsidiaries to undertake non-banking financial services activities. After the initial stabilisation period of five years, and after a review, the RBI may liberalise the scope of activities for Small Banks.
- The promoters' other financial and non-financial services activities, if any, should be distinctly ring-fenced and not co-mingled with banking business.
- A robust risk management framework is required and the banks would be subject to all prudential norms and RBI regulations that apply to existing commercial banks, including maintenance of CRRand SLR.
- In view of concentration of area of operations, the Small Bank would need a diversified portfolio of loans, spread over it area of operations.
- The maximum loan size and investment limit exposure to single/group borrowers/issuers would be restricted to 15 per cent of capital funds.
- Loans and advances of up to Rs 25 lakhs, primarily to micro enterprises, should constitute at least 50 per cent of the loan portfolio.
- For the first three years, 25 per cent of branches should be in unbanked rural areas.
Payments Banks
- Objective of payments banks is to increase financial inclusion by providing small savings accounts, payment/remittance services to migrant labour, low income households, small businesses, other unorganised sector entities and other users by enabling high volume-low value transactions in deposits and payments/remittance services in a secured technology-driven environment.
- Those who can promote a payments banks can be a non-bank PPIs, NBFCs, corporate's, mobile telephone companies, super market chains, real sector cooperatives companies and public sector entities. Even banks can take equity in Payments Banks.
- Payments Banks can accept demand deposits (only current account and savings accounts). They would initially be restricted to holding a maximum balance of Rs 100,000 per customer. Based on performance, the RBI could enhance this limit.
- The banks can offer payments and remittance services, issuance of prepaid payment instruments, internet banking, functioning as business correspondent for other banks.
- Payments Banks cannot set up subsidiaries to undertake NBFC
- As in the case of Small Banks, other financial and non-financial services activities of the promoters should be ring-fenced.
- The Payments Banks would be required to use the word 'Payments' in its name to differentiate it from other banks.
- No credit lending is allowed for Payments Banks.
- The float funds can be parked only in less than one year G-Secs
In order to expedite financial inclusion, finance minister Arun Jaitley in his budget speech said "RBI will create a framework for licensingsmall banks and other differentiated banks.
Differentiated banks serving niche interests, local area banks, payment banks etc. are contemplated to meet credit and remittance needs of small businesses, unorganized sector, low income households, farmers and migrant work force."
Within a week of the budget, RBI issued draft guidelines for setting up small banks and payment banks. RBI in its guidelines said that both payment banks and small banks are 'niche' or differentiated banks, with the common objective of furthering financial inclusion.
Following are some of the conditions which are common to both the banks:
The minimum capital requirement would be Rs 100 crore
- Promoter contribution would be at least 40 per cent for the first five years. Excess shareholding should be brought down to 40 per cent by the end of fifth year, to 30 per cent by the end of 10th year and to 26 per cent in 12 years from the date of commencement of business
- Foreign shareholding in these banks will be as per current FDIpolicy
- Voting rights to be line with the existing guideline for private banks
- Entities other than promoters will not be permitted to have shareholding in excess of 10 per cent.
- The bank should comply with the corporate governance guidelines, including 'fit and proper' criteria for Directors as issued by RBI
- Operations of the bank should be fully networked and technology driven from the beginning
Small Banks
- The purpose of the small banks will be to provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation.
- The objective for these Small Banks is to increase financial inclusion by provision of savings vehicles to under-served and unserved sections of the population, supply of credit to small farmers, micro and small industries, and other unorganised sector entities through high technology-low cost operations.
- Resident individuals with 10 years of experience in banking and finance, companies and Societies will be eligible as promoters to set up small banks. NFBCs, micro finance institutions (MFIs), and Local Area Banks (LABs) can convert their operations into those of a small bank. Local focus and ability to serve smaller customers will be a key criterion in licensing such banks.
- Branch expansion: For the initial three years, prior approval will be required.
- The area of operations would normally be restricted to contiguous districts in a homogenous cluster of states of union territories so that the Small Bank has a 'local feel' and culture. However, if necessary, it would be allowed to expand its area of operations beyond contiguous districts in one or more states with reasonable geographical proximity.
- The bank shall primarily undertake basic banking activities of accepting deposits and lending to small farmers, small businesses, micro and small industries, and unorganised sector entities. It cannot set up subsidiaries to undertake non-banking financial services activities. After the initial stabilisation period of five years, and after a review, the RBI may liberalise the scope of activities for Small Banks.
- The promoters' other financial and non-financial services activities, if any, should be distinctly ring-fenced and not co-mingled with banking business.
- A robust risk management framework is required and the banks would be subject to all prudential norms and RBI regulations that apply to existing commercial banks, including maintenance of CRRand SLR.
- In view of concentration of area of operations, the Small Bank would need a diversified portfolio of loans, spread over it area of operations.
- The maximum loan size and investment limit exposure to single/group borrowers/issuers would be restricted to 15 per cent of capital funds.
- Loans and advances of up to Rs 25 lakhs, primarily to micro enterprises, should constitute at least 50 per cent of the loan portfolio.
- For the first three years, 25 per cent of branches should be in unbanked rural areas.
Payments Banks
- Objective of payments banks is to increase financial inclusion by providing small savings accounts, payment/remittance services to migrant labour, low income households, small businesses, other unorganised sector entities and other users by enabling high volume-low value transactions in deposits and payments/remittance services in a secured technology-driven environment.
- Those who can promote a payments banks can be a non-bank PPIs, NBFCs, corporate's, mobile telephone companies, super market chains, real sector cooperatives companies and public sector entities. Even banks can take equity in Payments Banks.
- Payments Banks can accept demand deposits (only current account and savings accounts). They would initially be restricted to holding a maximum balance of Rs 100,000 per customer. Based on performance, the RBI could enhance this limit.
- The banks can offer payments and remittance services, issuance of prepaid payment instruments, internet banking, functioning as business correspondent for other banks.
- Payments Banks cannot set up subsidiaries to undertake NBFC
- As in the case of Small Banks, other financial and non-financial services activities of the promoters should be ring-fenced.
- The Payments Banks would be required to use the word 'Payments' in its name to differentiate it from other banks.
- No credit lending is allowed for Payments Banks.
- The float funds can be parked only in less than one year G-Secs
Hey guys m new to this group n just started my grade b prep... Wanna know is it necessary to join coaching for clearing this paper ?? Is it possible to clear it with ur own prep if v give 100% dedication ?? Plzzzzz help !!!!
While Nbfc's are regulated by rbi,then the chit fund industry is regulated by whom?
Rbi or sebi or state govt or goi????