Savings(taxable) bonds.
Anyone having Gktoday Module for all the subject?
ibps clerk mains lo cmputer awereness untundha
Repo vs MSF rate
Marginal standing facility is a window for banks to borrow from Reserve Bank of India in emergency situation when inter-bank liquidity dries up completely. Banks borrow from the central bank by pledging government securities at a rate higher than the repo rate under liquidity adjustment facility or LAF in short.
Base rate vs Bank rate
Base rate is the minimum rate set by the Reserve Bank of India below which banks are not allowed to lend to its customers. Bank rate is the rate charged by the central bank for lending funds to commercialbanks.
Base Rate vs MCLR
Base rate calculation is based on cost of funds, minimum rate of return, i.e margin or profit, operating expenses and cost of maintaining cash reserve ratio while the MCLR is based on marginal cost of funds, tenor premium, operating expenses and cost of maintaining cash reserve ratio.
The main factor of difference is the calculation of marginal cost under MCLR. Marginal cost is charged on the basis of following factors- interest rate for various types of deposits, borrowings and return on net worth. Therefore MCLR is largely determined by marginal cost of funds and especially by deposit rates and repo rates.
Reasons for introducing MCLR
RBI decided to shift from base rate to MCLR because the rates based on marginal cost of funds are more sensitive to changes in the policy rates. This is very essential for the effective implementation of monetary policy. Prior to MCLR system, different banks were following different methodology for calculation of base rate /minimum rate – that is either on the basis of average cost of funds or marginal cost of funds or blended cost of funds. Thus, MCLR aims
- To improve the transmission of policy rates into the lending rates of banks.
- To bring transparency in the methodology followed by banks for determining interest rates on advances.
- To ensure availability of bank credit at interest rates which are fair to borrowers as well as banks.
- To enable banks to become more competitive and enhance their long run value and contribution to economic growth.
Calculation of MCLR
The MCLR is a tenor linked internal benchmark (tenor means the amount of time left for the repayment of a loan). The actual lending rates are determined by adding the components of spread to the MCLR. Banks will review and publish their MCLR of different maturities, every month, on a pre-announced date.
The MCLR comprises of the following:
a) Marginal cost of funds which is a novel concept under the MCLR methodology comprises of Marginal cost of borrowings and return on networth, appropriately weighed.
i.e.,
Marginal cost of funds = (92% x Marginal cost of borrowings) + (8% x Return on networth)
Thus, marginal cost of borrowings has a weightage of 92% while return on net worth has 8% weightage in the marginal cost of funds. Here, the weight given to return on networth is set equivalent to the 8% of risk weighted assets prescribed as Tier I capital for the bank. The marginal cost of borrowing refers to the average rates at which deposits of a similar maturity were raised in the specified period preceding the date of review, weighed by their outstanding balance in the bank’s books.
i.e,
Rates offered on deposits of a similar maturity on the date of review/ rates at which funds raised x Balance outstanding as a percentage of total funds (other than equity) as on any day, but not more than seven calendar days prior to the date from which the MCLR becomes effective.
b) Negative carry on account of' Cash reserve ratio (CRR)- Negative carry on the mandatory CRR arises because the return on CRR balances is nil. Negative carry on mandatory Statutory Liquidity Ratio (SLR) balances may arise if the actual return thereon is less than the cost of funds.
c) Operating Cost associated with providing the loan product, including cost of raising funds, but excluding those costs which are separately recovered by way of service charges.
d) Tenor Premium- The change in tenor premium cannot be borrower specific or loan class specific. In other words, the tenor premium will be uniform for all types of loans for a given residual tenor.
Banks may publish every month the internal benchmark/ MCLR for the following maturities:
- Overnight MCLR,
- One-month MCLR,
- Three-month MCLR,
- Six month MCLR,
- One year MCLR.
- MCLR for any other maturity which the bank considers fit
Banks have the freedom to offer all categories of advances on fixed or floating interest rates. Banks have to determine their actual lending rates on floating rate advances in all cases by adding the components of spread to the MCLR. Accordingly, there cannot be lending below the MCLR of a particular maturity, for all loans linked to that benchmark. Fixed rate loans upto three years are also priced with reference to MCLR.
However, certain loans like Fixed rate loans of tenor above three years, special loan schemes formulated by Government of India, Advances to banks’ depositors against their own deposits, Advances to banks’ own employees etc. are not linked to MCLR.
Source : Google
Banks fix their own base rates/MCLR
- True
- False
0 voters
Demand liabilities
Current deposits,
Demand liabilities portion of saving deposits,
margins held against LC/LG,
Balances in overdue FD,
cash certificate&RD,
Outstanding TTs, MTs & DDs,
Unclaimed deposits,
Credit balance in CC a/c &
Deposits held as security for loan payable on demand.
Time liabilities
FDs,
cash certificate,
cumulative & RDs,
time liabilities portion of saving bank deposits,
staff security deposits,
margins against LC not payable on demand,
deposit held as securities for advances &
India Dev Bonds
Source : BA capsule
Can you please share GDP forecast of different org?
At 20 00 North and 77 00 East..
Spread Over 287,590 Sq KM..
lies a MIRACLE!!!
With 3500 Years Of Culture and Science..
One that gives YOU..
1 Billion Reasons to care..INDIA..
We are back with the best
We are the Future
"POWER OF THE PEOPLE"
700 Millions below the age of 30 !
Home to 150 Million Peaceful Muslims..
Mix of all the known religions in the WORLD..
Oldest existing civilization known to man..
We " HAVE " and We " WILL "
Overcome all obstacles..INDIA..
The Hidden Power House..
United We Stand
We " WILL " Go!!!
We " WILL " See!!!
We " WILL " Conquer!!!
"Unity in Diversity" has been the distinctive feature of our culture..."UNITED WE STAND ; DIVIDED WE FALL..."
HAPPY REPUBLIC DAY TO EVERYONE
😃
Jo log bhi current daal rhe quiz vinamra nivedan yeh Hai ki thoda off the beaten track daalo... Matlab eo kabhre Jo ki technically importnat honi chahiye but sab koi nhi janta...
Bjaii yahan 100% sahi ho rhee h ex hall mein tukko seekaam chalana padta Hai ..it's frustrating as hell man ..please post ek level upar k question
Lets go 1 level upar!!!!! I would like to request you guys ki kam seeam 20-30% questions aise daaliye Jo ki ba capsule ,grade u p tornado mein na ho.. core newspaper reading based questions.. and core banking awareness related application based questions.
Where is Pisces bhai...why is this group so dead
Goodnight :))
Words to recollect ( Word of the Year )
Match the following
Group A
Populism
Youth quake
Aadhaar
Fake news
Feminism
Group B
Merriam Webster
Collins
Oxford
Cambridge
3 important points
⭐️ China will host 2018 Shanghai Cooperation Organization (SCO) Summit at Qingdao, eastern Shandong Province in June 2018. China had taken over rotating chair of SCO after17th SCO summit concluded in Astana, capital of Kazakhstan in June 2017.
⭐️ The annual meeting of the Shanghai Cooperation Organisation (SCO-2017) has started in Russian city of Sochi on November 30, 2017. Sushma Swaraj, the Union External Affairs Minister, will represent India in the two-day summit.
⭐️ The 2018 Shanghai Cooperation Organisation (SCO) military cooperation meeting was held in Beijing, China on January 15. An Indian delegation led by Major General Ajay Seth participated in the meeting, which discussed issues of practical cooperation among SCO nations.