RBSE SS Voc Banking cheat sheet

Bank = institution that accepts demand deposits repayable on demand and lends/ invests the funds; in India regulated under Banking Regulation Act, 1949.

RBI Act, 1934: RBI established 1 April 1935, nationalised 1949; functions = currency issue, banker to government, banker's bank, lender of last resort, monetary authority.

Scheduled bank = bank included in Second Schedule of RBI Act; must satisfy Section 42 conditions incl. paid-up capital and reserves of not less than Rs 5 lakh.

Commercial banks: public sector, private sector, foreign, regional rural banks (RRB shareholding 50:35:15 Centre:State:Sponsor bank).

Cooperative credit structure: urban (UCBs) and rural (StCBs, DCCBs, PACS); PACS are not banks and cannot accept deposits from non-members.

NABARD (1982): apex for agriculture and rural credit; SIDBI (1990): MSME and small industry; EXIM Bank (1982): foreign trade finance.

Types of deposits: current (no interest, no restriction on withdrawals), savings (interest, limits), fixed/term (interest, maturity).

CRR = share of NDTL kept with RBI; SLR = share held in approved securities/gold; both set by RBI.

Money supply: M1 = currency + demand deposits + other deposits with RBI; M3 = M1 + time deposits (broad money).

KYC: verify identity and address, PAN/Form 60 above threshold, re-KYC periodic; small accounts allowed with aggregate limits.

Basic Savings Bank Deposit Account (BSBDA): no minimum balance, four free withdrawals per month, no age/income bar.

Joint account operation modes: either-or-survivor, former-or-survivor, latter-or-survivor, jointly; mandate must be recorded at opening.

Minor account: up to age 10 operated by guardian; above 10 minor may operate savings account himself; no overdraft to minor.

Dormant/inoperative account: no customer-induced transaction for 2 years; unclaimed balances over 10 years go to RBI DEAF.

Nomination under Banking Regulation Act Section 45ZA; nominee is a trustee, not automatically the owner.

Stop payment instruction must be in writing/authenticated; bank is liable if it pays after valid stop-payment notice.

Passbook vs statement: passbook is a record copy; entries can be corrected only with proper authority.

Safe deposit locker: bank is bailee, not tenant; locker agreement is not a lease.

Negotiable Instruments Act, 1881 covers promissory note, bill of exchange, cheque; Section 13 defines negotiability.

Cheque = bill of exchange drawn on a specified banker, payable on demand; drawer, drawee (bank), payee are parties.

Crossing: general crossing (two parallel lines) = pay through bank; special crossing names a banker; account payee restricts transfer.

Holder in due course: obtains instrument for value, in good faith, before maturity, without notice of defect; gets better title.

Cheque validity in India: 3 months from date of issue (RBI direction); stale cheque returned unpaid.

Section 138 NI Act: dishonour of cheque for insufficient funds; notice within 30 days of dishonour; complaint within 1 month after 15-day notice period.

Endorsement: blank, full, restrictive, conditional; endorsement in favour of a minor is valid.

Payment systems: RTGS (minimum Rs 2 lakh, real-time), NEFT (batch, 24x7 since Dec 2019), IMPS (24x7, immediate, up to Rs 5 lakh).

UPI: instant mobile payment using VPA; NPCI operates UPI, IMPS, NACH, RuPay, BHIM, AePS.

Customer service standards: complaint acknowledgement and resolution timelines as per RBI Integrated Ombudsman Scheme, 2021.

RBI Integrated Ombudsman Scheme (2021): one portal, one email, one address; complaint after 30 days no response from bank.

Fair Practices Code: transparency in charges, no hidden fees, reason for loan rejection in writing.

Grievance escalation ladder: branch manager → nodal officer → RBI Ombudsman.

Charges: banks must display service charges on website; no charge for basic savings deposit account.

Confidentiality: bank must not disclose customer information except under law, court order, or with consent.

Relationship banking: cross-selling, CRM, lifetime value; distinction between customer satisfaction and loyalty.

Deposit insurance: DICGC covers up to Rs 5 lakh per depositor per bank for deposits, including principal and interest.

5 Cs of credit: character, capacity, capital, collateral, conditions.

Credit appraisal: financial analysis, ratio analysis, cash flow, project viability, technical/economic feasibility.

Types of security: primary (hypothecation, pledge, mortgage, assignment) and collateral; charge creation and registration with ROC/ CERSAI.

Pledge = possession with creditor; hypothecation = charge without possession; mortgage = interest in immovable property.

Priority Sector Lending targets: 40% of ANBC for commercial banks; sub-targets for agriculture (18%), micro enterprises, weaker sections (12%).

MSME classification (2020 revision): investment and turnover criteria; micro, small, medium categories.

NPA classification: substandard (<=12 months), doubtful (>12 months), loss assets; provisioning norms per RBI.

SARFAESI Act, 2002: enforcement of security without court intervention after 60-day notice; applies to secured assets above threshold.

LTV, DSCR, EMI formula: EMI = P x r x (1+r)^n / ((1+r)^n - 1).

Accounting equation: Assets = Liabilities + Capital; double-entry system means every debit has an equal credit.

Golden rules: debit what comes in, credit what goes out (real); debit expenses/losses, credit incomes/gains (nominal); debit receiver, credit giver (personal).

Bank's books: customers' deposits are liabilities; loans and advances are assets.

Trial balance: list of ledger balances; total debit = total credit; detects arithmetic errors, not all errors.

Final accounts: Trading account (gross profit), Profit and Loss account (net profit), Balance Sheet (position).

Cash book vs passbook: cash book is bank's record of customer; passbook is customer's copy.

Reconciliation statement: starts with balance as per cash book or passbook; adjusts cheques issued/ deposited but not cleared, bank charges, interest.

Key ratios: current ratio = current assets/current liabilities; debt-equity; gross NPA ratio = gross NPAs/gross advances.

Provision vs reserve: provision is for known liability/ loss; reserve is appropriation of profit.

Digital channels: ATM, internet banking, mobile banking, UPI, wallets, PoS, AePS, USSD (*99#).

Card types: debit, credit, prepaid; EMV chip and PIN; contactless; tokenisation replaces card number with token.

Security: 2-factor authentication mandatory for card-not-present transactions; OTP, biometric, device binding.

NPCI products: UPI, IMPS, NACH, RuPay, BHIM, AePS, FASTag (NETC).

Account aggregator framework: consent-based data sharing under RBI; user controls consent artefact.

Digital lending guidelines (RBI 2022): direct disbursal to borrower's bank account, no first-loss default guarantee, LSP disclosure.

Fintech categories: payments, lending, wealth, insurtech, regtech; API banking and open banking.

Cyber fraud: phishing, vishing, smishing, SIM swap; report to 1930 / cybercrime.gov.in; RBI zero-liability rules for unauthorised electronic transactions.

Financial inclusion = access to affordable financial services: savings, credit, insurance, pension, payments.

PMJDY (2014): basic savings account, RuPay card, overdraft up to Rs 10,000, accident insurance cover.

Pradhan Mantri Jeevan Jyoti Bima Yojana (PMJJBY): life cover Rs 2 lakh; Pradhan Mantri Suraksha Bima Yojana (PMSBY): accident cover Rs 2 lakh.

Atal Pension Yojana (APY): unorganised sector pension, co-contribution by government for eligible subscribers.

Stand Up India: loans to SC/ST and women entrepreneurs; Mudra: Shishu, Kishore, Tarun categories.

PM-KISAN: income support to small and marginal farmers; DBT through Aadhaar-linked bank accounts.

Business correspondents (BCs) and BC agents extend banking to unbanked areas; Aadhaar Enabled Payment System (AePS) enables micro-ATM transactions.

Lead Bank Scheme and SLBC coordinate district-level financial inclusion; SHG-Bank linkage programme for rural credit.

Risk types: credit, market, operational, liquidity, interest rate, reputational, compliance, cyber.

Basel III: capital adequacy (CRAR), leverage ratio, liquidity coverage ratio (LCR), net stable funding ratio (NSFR).

RBI CRAR requirement for banks: 9% (plus capital conservation buffer) under Basel III.

KYC/AML: customer due diligence, suspicious transaction reporting (STR), cash transaction reporting (CTR) above threshold.

PMLEA 2002: prevention of money laundering; FIU-IND receives reports.

Code of ethics: integrity, confidentiality, conflict of interest, fair dealing, no bribery.

Whistle-blower policy: employees can report unethical practices without retaliation.

Fraud risk: internal controls, segregation of duties, dual custody, maker-checker.

Bank branch practical: account opening form, KYC documents, passbook issuance, cheque book issue, cash receipt/ payment voucher.

Cash handling: cash receipt and payment, denomination slip, teller balancing at end of day; shortage/ excess recording.

Clearing: cheque deposit, clearing house, CTS (cheque truncation system) image-based clearing.

Project work structure: title, objectives, methodology, data collection, analysis, findings, conclusion, bibliography.

Employability: resume, cover letter, interview preparation, group discussion, communication and customer-handling skills.

Banking software: core banking solution (CBS), Finacle/ BaNCS type systems; front-office vs back-office functions.

Documentation: loan application, sanction letter, agreement, guarantee, hypothecation deed.

Soft skills for banking: active listening, empathy, cross-selling, complaint handling, teamwork.