NHB Assistant Manager flashcards

32 cards. Read the term and the definition here. The deck at the top of this page is optional.

Syllogism conversion rule

In syllogistic reasoning, 'All A are B' converts to 'Some B are A' only if A is non-empty; 'Some A are B' always converts to 'Some B are A'.

Blood relation: maternal uncle

The brother of one's mother. In a family tree, mother's brother is represented as a male sibling of the mother.

OSI model layers

Seven layers from top to bottom: Application, Presentation, Session, Transport, Network, Data Link, Physical. Mnemonic: All People Seem To Need Data Processing.

Absolute vs relative reference

In spreadsheets, $A$1 is an absolute reference (fixed column and row); A1 is relative (changes when copied); $A1 fixes column only; A$1 fixes row only.

NHB establishment

National Housing Bank was established in 1988 under the National Housing Bank Act, 1987, as the apex institution for housing finance, wholly owned by RBI.

Repo rate meaning

The rate at which RBI lends short-term funds to commercial banks against government securities. An increase in repo rate typically raises borrowing costs.

PMAY CLSS

Credit Linked Subsidy Scheme under Pradhan Mantri Awas Yojana provides interest subsidy on home loans to EWS, LIG, and MIG categories for new construction or purchase.

SARFAESI Act, 2002

Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act allows secured creditors to enforce security without court intervention after 60 days' notice.

Subject-verb agreement rule

A singular subject takes a singular verb; 'one of the + plural noun' takes a singular verb. Example: 'One of the boys is here.'

Since vs for

Use 'since' with a point of time (since 2010) and 'for' with a duration (for five years) in perfect tenses.

Active to passive voice

Object becomes subject; verb becomes be + past participle; agent introduced by 'by'. Example: 'She writes a letter' → 'A letter is written by her.'

Principal vs principle

'Principal' means head of an institution or main; 'principle' means a rule or belief. Example: school principal; principle of honesty.

Simple Interest formula

SI = P × R × T / 100, where P is principal, R is annual rate percent, and T is time in years. Amount = P + SI.

Compound Interest formula

A = P(1 + R/100)^T; CI = A − P. For half-yearly compounding, use rate R/2 and time 2T.

Successive percentage change

Net change after a% then b% is a + b + ab/100 percent. Example: 10% then 20% gives 10 + 20 + 200/100 = 32%.

Time and work formula

If A completes work in x days, one day's work = 1/x. Combined rate = sum of individual rates; total time = 1/(sum of rates).

Speed conversion

To convert km/h to m/s multiply by 5/18; to convert m/s to km/h multiply by 18/5. Distance = Speed × Time.

EMI formula

EMI = P × r × (1+r)^n / [(1+r)^n − 1], where r = monthly interest rate (annual/12/100), n = tenure in months, P = principal.

RBI LTV ratios for home loans

Loan-to-Value caps: up to ₹30 lakh - 90%; ₹30–75 lakh - 80%; above ₹75 lakh - 75%. Higher LTV means lower down payment.

CERSAI

Central Registry of Securitisation Asset Reconstruction and Security Interest of India records security interests in immovable property to prevent multiple financing of the same asset.

Types of mortgage

Simple mortgage (personal liability), mortgage by conditional sale, usufructuary mortgage (possession to lender), English mortgage (absolute transfer with reconveyance), equitable mortgage (deposit of title deeds).

NEFT vs RTGS

NEFT settles in batches; RTGS is real-time gross settlement with minimum ₹2 lakh. IMPS is instant 24×7; UPI is mobile-based.

KYC officially valid documents

Aadhaar, PAN, passport, voter ID, driving licence, and NREGA job card are accepted as officially valid documents for customer identification under KYC norms.

Basel III capital ratios

Minimum CET1 4.5%, Tier 1 6%, total capital 8% of risk-weighted assets; plus capital conservation buffer 2.5% and countercyclical buffer 0–2.5%.

NPA definition

A loan becomes a Non-Performing Asset when interest or principal is overdue for more than 90 days. Sub-standard, doubtful, and loss are further classifications.

SMA classification

Special Mention Account: SMA-0 (overdue 1–30 days), SMA-1 (31–60 days), SMA-2 (61–90 days). Used for early warning of stress before NPA.

Prompt Corrective Action triggers

RBI's PCA framework triggers on capital adequacy ratio, net NPA ratio, and leverage ratio; thresholds vary by indicator and lead to restrictions on lending and dividends.

IBC resolution timeline

Insolvency and Bankruptcy Code, 2016: resolution process within 180 days, extendable to 270 days; Committee of Creditors decides with 66% majority.

Provisioning for NPAs

Standard assets: 0.25–0.40%; sub-standard: 15% (secured) / 25% (unsecured); doubtful: 25–100%; loss assets: 100% provision.

ALM meaning

Asset-Liability Management matches maturities of assets and liabilities; monitors liquidity gaps in time buckets (1–14 days, 15–28 days) and interest rate sensitivity.

CRILC reporting threshold

Banks must report exposures above ₹5 crore to the Central Repository of Information on Large Credits (CRILC) for early detection of stress.

Maker-checker principle

Internal control where one person prepares a transaction (maker) and another verifies/approves it (checker), reducing fraud and error risk.