Articles related to Banking Knowledge.
The Nayak Committee method — also called the Simplified Turnover Method (STM) — is one of the most frequently tested topics in JAIIB and bank promotion exams, and one of the most widely used tools for assessing working capital requirements of small businesses. This guide covers the correct formula, step-by-step Read more…
Pari passu charge is one of the most commonly used security structures in consortium and multiple banking arrangements in India. When two or more banks lend to the same borrower against the same asset, understanding pari passu charge becomes essential for every credit officer, branch manager and JAIIB aspirant. This Read more…
Working Capital is a financial indicator of operational liquidity of a business organization. Working Capital is the short term assets to cover the short term liabilities of the organization. Working Capital is calculated as Current Assets – Current Liabilities, also represented as Net Working Capital. The Working Capital Ratio or Read more…
Letter of Credit (LC) and the ‘Standby Letter of Credit’ (SBLC) are used by Importers and Exporters in International Trade to ensure financial safety so that payment of the supplier is assured of payment once he has performed his obligation. While LC is used as a primary method of payment, Read more…
Can Trading business/ Trader be classified as MSME? Retail Trade and Wholesale trade are now treated as MSME as per new definition of MSME. Traders can now apply for Udyam Registration Portal Ministry of Micro, Small and Medium Enterprises vide Office Memorandum (OM) No. 5/2(2)/2021-E/P & G/Policy dated July 2, 2021, Read more…
This is summary of Public Provident Fund (PPF) Scheme covering major features of the scheme summarized in one picutre. Eligibilty •Only 1 A/c in one name. No Joint A/c. No Age limit•Only Individual Resident. Blind/ Illitrate person can open•Power of Attorney holder not allowed Deposit Rules •Min Initial Dep. Rs.500•Thereafter Read more…
Emergency Credit Line Guarantee Scheme of Rs. 3 lakh crore Objective The Scheme is a specific response to the unprecedented situation COVID-19. To provide relief to the MSME sector, enabling MSMEs to meet their operational liabilities and restart their businesses. MLIs All SCBs are eligible as MLIs. NBFCs which have Read more…
Bank promotion exams are held in almost every bank and if you are appearing for promotion in your bank in 2021, you must be looking for Bank Promotion Study Material. If you are not sure which topics are covered in the bank promotion test, you have landed to correct page. Read more…
What does CERSAI mean? CERSAI is the acronym for Central Registry of Securitisation Asset Reconstruction and Security Interest, which is a central online security registry of India In simple words, it is an online database of all the properties mortgaged with banks. How? When a Bank finance against a property, Read more…
CGTMSE (Credit Guarantee Fund Trust for Micro and Small Enterprises) is a government-backed guarantee scheme that enables banks to extend collateral-free loans up to ₹2 crore to micro and small enterprises. It was established jointly by the Ministry of MSME and SIDBI in 2000 to remove the collateral barrier that Read more…