Punjab PSEB Matric NSQF BFSI cheat sheet

Banking intermediation: banks accept deposits (demand and time) and lend them as loans and advances; the spread between lending rate and deposit rate, minus operating cost and provisioning, is the main source of bank income.

Reserve Bank of India (RBI) is the central bank and regulator for banks and non-bank financial companies; it issues currency, conducts monetary policy, acts as banker to government and banks, and supervises the financial system.

Deposit types: savings and current accounts are demand deposits (withdrawable on demand, low or nil interest); fixed and recurring deposits are time deposits with fixed tenure and higher interest; interest on deposits above the bank's threshold attracts TDS.

KYC (Know Your Customer) requires identity and address proof, photograph and customer due diligence before opening an account or allowing high-value transactions; PAN is mandatory for deposits/transactions crossing specified limits.

Loan classification basics: a loan is a standard asset when dues are current; substandard when NPA up to 12 months; doubtful when NPA beyond 12 months; loss asset when identified as uncollectible by the bank or auditor.

A Non-Performing Asset (NPA) is a loan or advance where interest or principal has remained overdue for more than 90 days; NPAs require provisioning, which reduces bank profit and capital.

Negotiable instruments: a cheque is a bill of exchange drawn on a specified banker and payable on demand; crossing (general or special) restricts payment to a banker or a named banker; a cheque becomes stale after three months from its date.

Financial inclusion schemes: Pradhan Mantri Jan Dhan Yojana (PMJDY) provides basic savings accounts with RuPay debit card and overdraft facility; Atal Pension Yojana and PM Jeevan Jyoti Bima Yojana / PM Suraksha Bima Yojana provide pension and insurance cover to subscribers.

Interest calculations: simple interest = P x R x T / 100; compound interest = P[(1 + R/100)^T - 1]; EMI on a loan depends on principal, rate and tenure, with interest computed on the reducing balance.

Financial markets: primary market issues new securities (IPO, FPO, rights issue, bonds); secondary market (NSE, BSE) trades existing securities; SEBI regulates securities markets and protects investors.

Depositories and intermediaries: NSDL and CDSL hold securities in demat form; Depository Participants open demat accounts; stockbrokers execute trades; AMFI promotes the mutual fund industry.

Mutual fund scheme types: equity, debt, hybrid and money market schemes; open-ended schemes allow continuous redemption at NAV, closed-ended schemes have fixed maturity and are listed; SIP invests a fixed amount at fixed intervals.

NAV (Net Asset Value) = (total assets of the scheme - total liabilities) / number of units outstanding; mutual fund returns are usually measured against a benchmark index.

Insurance principle of indemnity: general insurance (fire, marine, motor, health) compensates actual loss up to the sum insured; life insurance is a contract of assurance paying the sum assured on death or maturity.

Insurance essentials: insurable interest must exist at the time of the contract (life) or at the time of loss (general); utmost good faith requires full disclosure of material facts; proximate cause links the loss to the insured peril.

IRDAI (Insurance Regulatory and Development Authority of India) licenses insurers, agents, brokers and third-party administrators, and sets solvency and customer-protection norms; insurance ombudsman settles policyholder grievances.

Premium and bonus in life insurance: premium is the consideration paid for cover; with-profit (participating) policies share surplus as bonus; term insurance pays only on death during the policy term and has no maturity value.

Retirement and pension products: National Pension System (NPS) is a defined-contribution scheme regulated by PFRDA with Tier-I and Tier-II accounts; annuity converts accumulated corpus into regular pension income.

Customer service in BFSI: banks must display charges, provide passbooks/statements, honour valid cheques and settle complaints within the time frame set by RBI's integrated ombudsman scheme; mis-selling is a punishable service failure.

Anti-money laundering: banks report cash transactions above the prescribed threshold and suspicious transactions to FIU-IND; structuring transactions to avoid reporting is itself a suspicious activity.

Digital banking: UPI, NEFT, RTGS and IMPS are payment systems; NEFT settles in batches, RTGS is for high-value real-time settlement, IMPS is immediate 24x7; card transactions require PIN and OTP for two-factor authentication.

Credit information: CIBIL/credit bureaus hold repayment history; a credit score summarises creditworthiness and affects loan approval and interest rate; borrowers can obtain one free full credit report per year from each bureau.

Grievance redressal: banks must have a nodal officer and internal ombudsman; unresolved complaints go to the RBI Integrated Ombudsman; insurance complaints go first to the insurer's grievance officer, then to IRDAI's ombudsman.

Ethics and fraud prevention: employees must not share customer credentials, must verify signature and account details before paying cheques, and must report phishing, skimming and fake-currency notes as per bank procedure.

Documentation in BFSI: loan agreements state principal, rate, tenure, penal charges and security; insurance proposals record disclosures and nomination; a nomination ensures the claim amount goes to the nominee on the policyholder's death.

Career and NSQF context: the BFSI sector skill council sets qualification packs and job roles (e.g., business correspondent, sales executive, insurance agent); NSQF levels 1-10 map to increasing skill and autonomy.