· What is banking amendment act?
The Banking Amendment act 2011 was introduced in order to amend the Banking Regulation Act, 1949 and the Banking Companies Act, 1970/1980. The bill is passed by both the Houses of Parliament. The bill is aimed to strengthen the regulatory powers of RBI. The bill aims to open the doors for new banks and branches by issuing new bank licenses by RBI. The act aims at empowering RBI by rules like supersede the Board of Directors of bank if situation arises. This also aims to enable nationalized banks to raise capital through “bonus” and “rights” issue.
Q. What is RTI act?
RTI – Right to Information act mandates timely response to Indian citizens, if they request for government related information. The act guarantees citizens to get the desired information within 30 days. This law was passed by Parliament on 15 June 2005 and came fully into force on 12 October 2005. Central Intelligence and Security agencies are excluded from providing information.
Q .What is NPA?
If interest or installment of principal has remained ‘past due’ for a specified period of time, then it is declared as NPA or Non-performing Asset. If a loan re-payment is due for a long period of time, then it will become NPA. It is banks discretion to identify what should be the period within which a loan should be declared as NPA. Banks tends to reduce the period to reduce the risk element. Usually it is 90 days of non-repayment, after which the loan will be declared as NPA
Q. What is IFSC?
IFSC is Indian Financial System Code, an alpha-numeric code that uniquely identifies a bank-branch participating in the NEFT system. This is an 11 digit code. IFSC is used by the NEFT system to identify the originating / destination banks / branches and also to route the messages appropriately to the concerned banks / branches.