Download - Govt Online Exam Covers

IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
General Awareness
290+ GA Important Points
1) India ranks 130th in 2015 Human Development Index : UNDP
2) Israeli-American violinist Itzhak Perlman (70) has been awarded 2016 Genesis Prize which is also
known as Jewish Nobel prize.
3) Rajasthan becomes the first state to submit smart city plan
4) Indian-origin politician Pravin Gordhan becomes South Africa’s Finance Minister
5) Vijay Kumar wins gold medal at 59th National Shooting Championship
6) Anirban Lahiri wins Order of Merit crown of Asian Tour
7) Typhoon Melor hits central Philippines
8) Union Government appointed L N Reddy Judicial Committee on OROP
9) Lok Sabha passes Atomic Energy (Amendment) Bill, 2015
10) Ground breaking ceremony of 1800-kilometre-long Turkmenistan-Afghanistan-Pakistan-India
(TAPI) gas pipeline project was held at the ancient city of Mary of Turkmenistan.
11) Indian-origin writer Jamaludeen Mohamed Sali from Singapore has been awarded prestigious
2015 South East Asia Write Award.
12) Legendary actor Dilip Kumar conferred with Padma Vibhushan
13) Losar festival beings in Ladakh region of J&K
14) Ahmad Javed appointed as Ambassador to Saudi Arabia
15) COP 21 adopts historic Paris Agreement on Climate Change
16) Wipro awarded 2015 Aegis Graham Bell Award
17) India and Japan ink 14 agreements in various fields
18) India & Japan sign MoC on High Speed Rail on Mumbai-Ahmedabad sector
19) Myanmar’s first UNESCO biosphere reserve Inle Lake launched
20) NGT bans registration of new diesel-run vehicles in Delhi
21) Renowned agro-economist Sharad Joshi passes away
22) Two Indian cities for first time have been designated as members of UNESCO’s Creative Cities
Network (UCCN). Two cities are
Varanasi City (Uttar Pradesh): It has been added in the City of Music category of network.
Jaipur City (Rajasthan): It has been added in the City of Crafts and Folk Art category of network.
23) Union Government inks MoU for establishing IIITs at Ranchi, Nagpur & Pune
24) Salman Rushdie awarded 2015 Mailer Prize for Lifetime Achievement
25) Union Government has imposed anti-dumping duty on import of cold-rolled flat products of
stainless steel for 5 years from 7 countries
26) India, Japan sign protocol to amend double taxation avoidance pact
27) Veteran Bollywood actor Naseeruddin Shah has been honoured with the lifetime achievement
award at the 12th edition of Dubai International Film Festival (DIFF).
28) Pakistan successfully test-fires nuclear-capable Shaheen-III ballistic missile. It is capable of
carrying nuclear as well as conventional warheads up to 2,750 kilometres
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 1
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
29) Prime Minister Narendra Modi has released On My Terms: From the Grassroots to the Corridors
of Power, an autobiography of former Union Minister Sharad Pawar.
30) Mexico Government approves world’s 1st Dengue fever vaccine named Dengvaxia
31) India and South Korea ink MoU on taxation treaty
32) Tunisian National Dialogue Quartet awarded 2015 Nobel Peace Prize
33) Mauricio Macri sworn in as President of Argentina
34) Israel successfully tests Arrow ballistic missile interceptor
35) Union Government declares Tamil Nadu flood as Calamity of Severe Nature
36) India and Pakistan have agreed to resume structured dialogue between them through new 10point Comprehensive Bilateral Dialogue (CBD).
37) Cabinet approves amendments to The National Waterways Bill, 2015
38) IISc bags US military contract for R&D on solar powered micro-grid
39) 10 December: Human Rights Day
40) India ranks 4th in black money outflows: GFI Report
41) CCEA approves measures to increase Pulses’ production
42) Union Cabinet approves MoU between India and UK in the field of cooperation in the energy
sector
43) The Union Cabinet chaired by the Prime Minister Narendra Modi has approved the Real Estate
(Regulation and Development) Bill, 2015.
44) German Chancellor Angela Merkel named 2015 Time’s Person of the Year
45) Lok Sabha passes Indian Trusts (Amendment), Bill 2015
46) 5th Heart of Asia conference begins in Pakistan
47) Scientists genetically modify Anopheles gambiae mosquito species to fight malaria
48) Iran has successfully carried out test of medium range Ghadr-110 ballistic missile near the
Chabahar, a port city in southeast of country along the Gulf of Oman.
49) Shuttler Carolina Marin wins Female Player of the Year award
50) Indian-American Entrepreneur Frank Islam selected for 2015 Uttar Pradesh Ratna Award
51) Parliament passes Negotiable Instruments (Amendment) Bill, 2015
52) Pune, Rajkot become interim IPL franchises to replace CSK, RR
53) Atomic Energy (Amendment) Bill, 2015 introduced in Lok Sabha to fast track nuclear power
projects
54) Maharashtra becomes first state to allow MLAs raise online question
55) Lok Sabha passes High Court and Supreme Court Judges (Salaries and Conditions of Service)
Amendment Bill, 2015
56) Centre-right MUD coalition wins 2015 Parliamentary election of Venezuela
57) First red alert on pollution declared in Beijing
58) India-Russia joint naval exercise INDRA NAVY-15 begins in Visakhapatnam
59) India, Pakistan holds NSA level talks in Bangkok
60) Canada sends first consignment of Uranium to India
61) Singapore replaces Mauritius as top source of FDI into India
62) Prime Minister Narendra Modi has released 2 commemorative coins on Dr B R Ambedkar as part of
the 125th birth anniversary year celebrations of the architecture of Indian Constitution. The coins
are of 10 rupee and 125 rupee denomination and were issued on the 60th Mahaparinirvan Divas of
Babasaheb Ambedkar.
63) Indian Railways has flagged off the first inaugural service of the Goa to Mumbai double-decker
air-conditioned Shatabdi train.
64) Australia has won the 2014-15 Men’s Hockey World League Final by defeating Belgium at
Sardar Vallabh Bhai Patel Stadium, Raipur
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 2
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
65) Kaher Kazem appointed as President and MD of General Motors India
66) World Bank launches $500 million Transformative Carbon Asset Facility(TCAF)
67) Union Government has launched Sugamya Bharat Abhiyan (Accessible India Campaign), a
nationwide campaign in a bid to achieve universal accessibility to persons with disabilities.
68) China has granted a license for production of first manned two seater electric aircraft RX1E
known as RX1E by the Civil Aviation Administration of China.
69) India’s forest & tree cover increased by 5, 081 Sq km: ISFR 2015
70) South Western Railways Zone introduces Biodiesel for trains
71) CEA Dr Arvind Subramanian Committee suggests GST rate of 17-18 per cent
72) Allahabad High Court in its judgment has made married daughters of deceased government
employees eligible for appointments on compassionate grounds in government jobs.
73) Himachal Pradesh becomes first State to launch Rotavirus vaccination project
74) Delhi Assembly passes Delhi Jan Lokpal Bill, 2015
75) Uttar Pradesh Government launches first International festival on Birds
76) Chinese President Xi Jinping has announced a 60 billion dollars package to African nations
during the Forum on China-Africa Cooperation (FOCAC) held in Johannesburg, South Africa.
77) Australia passes Anti-Terrorism law to strip citizenship
78) Scientist M. Nair Rajeevan appointed Earth sciences secretary
79) Paris Pact on Water and Climate Change Adaptation announced
80) 44th Navy Day observed on 4 December 2015
81) Lok Sabha passes The Bureau of Indian Standards Bill, 2015
82) Union Government releases postage stamp to mark centenary year of ZSI(Zoological Survey of
India )
83) First India International Science Festival begins at IIT-Delhi
84) Britain launches airstrikes against IS-controlled oil fields in Syria
85) GAIL launches Bhuvan-GAIL Portal for satellite monitoring of pipelines
86) Union Government to allow e-Postal Ballot System for Overseas electors
87) Justice T. S. Thakur sworn in as 43rd Chief Justice of India
88) Goa Government launches National Food Security Act, 2013
89) The Union Cabinet has approved proposal of setting up of 6 new Indian Institutes of Technology
(IITs) across the country. The 6 new IITs would be set up in Andhra Pradesh, Chhattisgarh, Goa,
Jammu and Kashmir, Kerala and Karnataka.
90) Union Cabinet approves pacts with Germany for solar energy
91) Government gives nod to introduction of Regional Centre for Biotechnology Bill, 2015
92) Government gives nod to MoU between India and Israel in the field of water resources
93) Veteran industrialist and former parliamentarian MAM Ramaswamy passed away
94) 3rd December: International Day of Persons with Disabilities
95) Vijay Kumar Choudhary elected as Bihar assembly Speaker
96) Union Ministry of Human Resource Development (HRD) has launched Global Initiative of
Academic Networks (GIAN) Scheme to boost the quality of higher education in India.
97) Maharashtra is biggest state economy: Brickwork Report
98) German cabinet approves military mandate to fight Islamic State in Syria
99) President gives assent to Labour Laws (Gujarat Amendment) Bill, 2015
100)Jharkhand Government declares entire state as drought hit
101) IMF approves China’s Yuan as elite reserve currency
102) China hosts 1st BRICS media summit
103) India, France launched International Solar Alliance
104) Colombian film Embrace of The Serpent adjudged best film of 46th IFFI
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 3
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
105) Roch Marc Christian Kabore elected as president of Burkina Faso
106) Union Government launches IPV injection as part of global polio endgame strategy
107) Indian Railways ink Rs 40000 cr deal of locomotive plants with GE, Alstom in Bihar
108) Anil Kumble resigns as chief mentor of Mumbai Indians
109) Russian legendary film Director Eldar Ryazanov passes away
110) 1st December: World AIDS Day
111) Hinduja Brothers received lifetime achievement award at Asian Business Leadership Forum
2015
112) Dr Abdul Kalam IGNITE award presented by President Pranab Mukherjee
113) Robert Lewandowski awarded with four Guinness World Record certificates for scoring five
goals in nine minutes
114) The International Day for the Abolition of Slavery was observed globally on 2 December 2015
115) Delhi Development Authority awarded with E-India Award
116) Renowned violinist L Subramaniam to be honoured with ITC Sangeet Samman
117) Sarangi maestro Ustad Sabri Khan passed away
118) President gave nod to Factories (Amendment) Bill, 2015 to allow women to work in night shifts
in Maharashtra.
119) Sir Venkatraman Ramakrishnan assumed Presidency of the Royal Society.
120) India’s Thakur Anoop Singh won gold medal in World Bodybuilding and Physique
Championships
121) Adidas India’s Pulin Kumar won prestigious INBA Award
122) Union Cabinet approved signing of MoU between India and Iran on visa facilitation
123) Navy inducts decoy system Maareech
124) Brazil entered longest recession since 1930s
125) Indian-American Dr Vijay M Rao was named as the chairperson of the prestigious Radiological
Society of North America (RSNA)
126) Axis Bank launches country's first 'display variant' debit card
127) ICBC to become Tata Group’s strategic banking partner
128) First India International Science Festival began at IIT-Delhi
129) NTC signed Integrity Pact with Transparency International India
130) YouTube opens first video production studio in India
131) GAIL, ISRO launch satellite-based portal to monitor pipelines
132) Uttar Pradesh Government launches first International festival on Birds
133) RBI bars 56 NBFCs from conducting business
134) RBI announced revised Priority Sector Lending norms for Regional Rural Banks. Among other
things, the PSL target was increased to 75 percent of total outstanding from the existing 60 percent.
The revised target will be effective from 1 January 2016.
135) The International Volunteer Day (IVD) was on 5 December 2015 observed across the world
with the theme The world is changing. Are you? Volunteer!
136). Australia passes Anti-Terrorism Law to strip citizenship
137) AP, Jharkhand join UDAY scheme to bolster Discoms
138) Tata Trusts partnered with Khan Academy for free online education
139) Atlas V rocket lifted off with Cygnus Cargo Spaceship to ISS
140) The National Research Development Corporation (NRDC) has entered into a memorandum of
agreement with CSIR-Indian Institute of Chemical Technology
141) Cochin Shipyard launches fast patrol vessels ICGS Atulya for Coast Guard.
142) Maharashtra becomes first state to allow MLAs raise online question
143) SC directed State and UT Governments to consider acid-attack victims under Disabled Quota
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 4
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
144) India launched I-LTEO programme to monitor 8 different biomes
145) Beijing issued first-ever Red Alert on Air Pollution
146) The much-delayed first phase of SmartCity Kochi, a joint venture of SmartCity Dubai and the
Kerala Government, is ready for opening and will most likely take place in January.
147) Loan applications worth Rs. 50 crore were received from micro, small and medium enterprises
(MSMEs), both existing and prospective, from the eastern region, particularly West Bengal, at the
end of the four-day ‘Biz Bridge 2015’ organised here in the city.
148) Tech Mahindra bags 'Forbes Top 100 Middle East - Global Meets Local 2015' Award
149) Centre sets up `SETU’ to support start-up businesses
150) MSDE and DHI signed MoU for skill development in manufacturing sector
151) Hetero became first Indian company to receive DGCI’s approval for hepatitis C drug
152) Singapore's Changi airport to run Jaipur, Ahmedabad airports
153) Karnataka delegation, which is touring France to promote ‘Invest Karnataka 2016’ (global
investment meet), has signed an Expression of Interest (EoI) agreement with Reitzel Group.
154) New Zealand formally becomes member of AIIB
155) India and United Kingdom on 9 December 2015 launched a joint initiative 2016: UK-INDIA
Year of Education and Research in New Delhi
156) India’s Kartik Sawhney and Neha Swain won 2016 Queen's Young Leaders Award
157) Luxembourg became the 10th country to ratify AoA of Asian Infrastructure Investment Bank
158) Mahela Jayawardene awarded honorary lifetime membership of MCC
159) IISc Banglore bagged solar panel research and development contract from US Military
160) Human Rights Day was on 10 December 2015 observed across the world.
161) Kapil Chopra to head world tourism council
162) Myanmar inaugurated Yangon Stock Exchange
163) National Commission for Safai Karamcharis recommended to make it a Permanent and
Statutory Body
164) Prakash Kumar Singh is new SAIL chairman
165) Elizabeth Susan Koshy clinched gold in 59th National Shooting Championships
166) Saudi voters elected women candidates for first time in Municipal council polls
167) Myanmar launched its first UNESCO Biosphere Reserve Inle Lake
168) Mascot and Logo of 2016 South Asian Games unveiled.
Mascot:- Tikhor
Logo:- the logo has eight petals representing the countries participating in the mega event.
169) Mahindra Group acquired Italian auto design firm Pininfarina
170) West Bengal Government honoured Bappi Lahiri and Kumar Sanu with Lifetime Achievement
Awards
171) Operation Smile-II to start from 1 January 2016
172) Financial inclusion: Banks open over 19 crore accounts under PM Narendra Modi's Jan Dhan
Yojana
173) NCML inks MoU with SBI to provide financing service to farmers
174) In India, 80% of women don’t have bank accounts: UNDP report
175) Currency notes with scribbling on them are legal tenders: RBI
176) PSU banks register 1,624 FIRs against wilful defaulters
177) SBI's new debit cards to have EMV chip & pin security
178) RBI aims to complete cleaning up of banks' book by March 2017
179) Google's Anandan to join IDFC Bank board as director
180) Banks need $140 billion to comply with Basel III norms by FY19
181) SBI to sell its 15% stake in NSE; may garner up to Rs 6,000 crore
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 5
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
182) Yes Bank commits $5 bn for climate action in India
183) Amendments to Negotiable Instruments Bill: Cheque bounce cases can now be filed where it is
presented
184) IDFC Bank selects TCS BaNCS for core banking
185) Yes Bank wins 'Bank of the Year' award in UK
186) Public sector lender Dena Bank has got board approval for dilution of government holding to up
to 52 per cent and raise capital up to Rs 2,500 crore from various bonds.
187) Future Fund to invest up to $200 million in India next year: Steve Byrom
188) SC appoints Virendra Singh as Lokayukta of Uttar Pradesh
189) Supreme Court has banned the registration of all diesel SUVs (Sports Utility Vechiles) and
luxury cars in the entire National Capital Region (NCR) of Delhi. The ban will be valid to SUVs,
luxury cars with engine capacity of 2000 cc or more till March 31, 2016.
190) Pakistan has successfully tested the nuclear-capable Shaheen-IA ballistic missile with a range of
900 km.
191) Saudi Arabia has launched Islamic Military Coalition, a new military alliance of 34 nations
mainly Muslim nations to fight terrorism.
192) International Atomic Energy Agency (IAEA) has ended its 12-year investigation into concerns
that Iran might be developing nuclear weapons
193) Combined Commanders Conference, an annual tri-services event chaired by Prime Minister
Narendra Modi was held on board INS Vikramaditya about 50 kms off Kochi coast.
194) Senior revenue service officer Arun Kumar Jain appointed Chairman of Central Board of Direct
Taxes (CBDT).
195) Arctic Region hits record high temperature over land: NOAA(National Oceanic and
Atmospheric Administration)
196) Apurvi Chandela wins gold medal at National Shooting Championship
197) Vijay Diwas observed across the country on 16th december to commemorate India’s victory in
1971 war
198) World Bank approved 1.5 billion US dollar loan to support Clean India Campaign
199) Renowned Israeli-US violinist Itzhak Perlman on 14 December 2015 was announced as the
2016 Genesis Prize Laureate for his accomplishments as a musician, teacher and advocate for people
with disabilities.
200) Seychelles government allows India to build Naval Base on its Assumption Island
201) India, Russia ink 16 pacts to expand cooperation in various sectors
202) North India’s first cable bridge named Atal Setu inaugurated in Jammu and Kashmir. It will
provide close connectivity among the three states of Jammu and Kashmir, Himachal Pradesh and
Punjab.
203) Steve Smith named ICC Test cricketer of Year for 2015. AB de Villiers was named the ODI
Cricketer of the Year
Other Categories ICC awards
ICC Emerging player of the year: Josh Hazlewood (Australia). Best T20 performance of the year: Faf du
Plessis (South Africa). Spirit of Cricket award: Brendon McCullum (New Zealand). ICC
Associate player of the year: Khurram Khan (UAE). Umpire of the year: Richard Kettleborough
(England). Women’s ODI Cricketer of the Year: Meg Lanning (Australia). T20I Women’s Cricketer
of the Year: Stefanie Taylor (West Indies).
204) Syed Kirmani nominated for 2015 Col. C.K. Nayudu Lifetime Achievement Award
205) 25th December: National Good Governance Day
206) UN designates 5th November as World Tsunami Awareness Day
207) India’s first indigenously designed & built frigate INS Godavari decommissioned
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 6
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
208) Dr. Rakesh K. Jain selected for 2015 National Medal of Science
209) Indian Navy conducts large scale fleet exercise on eastern seaboard
210) RBI extends deadline to exchange pre-2005 notes to June 30, 2016
211) Union Government has launched two mobile applications namely Crop Insurance and
AgriMarket Mobile to benefit farmers
212) 24th December: National Consumer Day
213) Philippines becomes first Asian country to approve sale of dengue vaccine Dengvaxia
214) Union Cabinet approves revised cost estimates of Salma Dam Project in Afghanistan
215) CCEA approves Rs 3,000 crore scheme for fisheries sector
216) Union Cabinet approves Lucknow Metro project
217) Amit Agarwal appointed as CFO of Jet Airways
218) Pawan Kumar Agarwal appointed CEO of FSSAI
219) Parliament passes Juvenile Justice (Care and Protection of Children) Bill . The bill has provision that
allows trying of juveniles between the ages of 16 and 18 years as adults for heinous offences.
220) Union Ministry of Defence has launched a new Make in India website
www.makeinindiadefence.comto make defence acquisition process simpler and to provide an
interface with industry.
221) PM Narendra Modi flags off first prototype electric bus for MPs
222) Spain’s ruling conservative People’s Party wins 2015 general election
223) New Zealand captain Brendon McCullum announces retirement
224) Every year 22nd December is observed as National Mathematics Day to celebrate birth
anniversary of great Indian autodidact Mathematician Srinivasa Ramanujan.
225) The United States (US) has lifted a 40 year ban on oil exports marking a historic shift for the
booming US oil industry.
226) Chennaiyin FC has won the second edition of Indian Super League (ISL) Football tournament
by defeating Goa FC in Jawahar lal Nehru statdium,Goa
227) Barcelona FC has won the 2015 FIFA Club World Cup for a record third time. In the final
match played at International Stadium Yokoham in Japan the winning team defeated River Plate FC
by 3-0 goals.
228) Vatican to confer sainthood on Mother Teresa
229) Miss Philippines Pia Alonzo Wurtzbach crowned Miss Universe 2015
230) President Pranab Mukherjee awarded Garwood Award for Outstanding Global Leader
231) Afghanistan becomes 164th member of WTO
232) The United Nations Security Council (UNSC) has unanimously adopted a resolution No. 2254
outlining a peace process in Syria
233) PM Narendra Modi inaugurates top Police Officers’ Conference in Gujarat
234) West Bengal Government approves proposal for formation of 5 new districts
235) India’s biggest Wildlife Rescue Centre named as Gorewada Zoo and Wildlife Rescue Centre has
been commissioned at Gorewada near Nagpur, Maharashtra.
236) Renowned British Novelist Peter Dickinson passes away
237) Uttar Pradesh government bans use of polythene bags across the State
238) R K Mathur appointed as Chief Information Commissioner
239) Renowned theatre artiste Chatla Sriramulu passes away
240) 23 poets and authors chosen for prestigious 2015 Sahitya Akademi Award
23 Awardee’s are:
Poetry: Brajendra Kumar Brahma (Bodo), Dhian Singh (Dogri), Ramdarash Mishra (Hindi), K.V.
Tirumalesh (Kannada), Kshetri Rajan (Manipuri) and Ram Shankar Awasthi (Sanskrit).
Short stories: Kula Saikia (Assamese), Man Mohan Jha (Maithili), Gupta Pradhan (Nepali), Bibhuti
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 7
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Pattanaik (Odia), Maya Rahi (Sindhi) and Volga (Telugu).
Novels: Cyrus Mistry (English), Jaswinder Singh (Punjabi), K R Meera (Malayalam) and Madhu
Acharya ‘Ashawadi’ (Rajasthani).
Essays: Rasik Shah (Gujrati) and A. Madhavan (Tamil).
Plays: Uday Bhembre (Konkani), Rabilal Tudu (Santali).
Books on criticism: Bashir Bhadarwahi (Kashmiri) and Shamim Tariq (Urdu).
Memoirs: Arun Khopkar (Marathi).
241) The National Stock Exchange (NSE) has launched three separate indices on three corporate
houses of India viz. Tata, Aditya Birla and Mahindra Group.
242) DAC gives nod to purchase of Russian S-400 Air Defence Missile Systems
243) French President Francois Hollande to be chief guest at 67th Republic Day Parade
244) Reva Khetrapal takes oath as Delhi’s Lokayukta
245) Union Cabinet gives nod to MoU with BRICS countries for energy conservation
246) ISRO successfully launches 6 Singapore Satellites onboard PSLV-C29
247) World Bank offers $1.5 billion loan for Swachh Bharat Mission
248) Modi inaugurates new Afghan Parliament built by India in Kabul
249) IndianOil, Oil India sign MoU with Rosneft
250) Veteran actress Sadhana passes away in Mumbai
251) Reliance Defence signs $6 billion pact with Russian arms firm as Modi visits Moscow
252) Idea Cellular on 23 December 2015 became the third mobile operator in India to launch 4G
services in India. Earlier, Bharti Airtel and Vodafone India had launched 4G services in India.
253) Gautam H Bambawale appointed as India's High Commissioner to Pakistan
254) Bihar Government banned 15-year-old diesel vehicles from plying on Patna roads
255) Biocon launched generic version of hepatitis-C drug Harvoni in India
256) Bihar Chief Minister Nitish Kumar approved Patna Metro Rail project
257) Zimbabwe announced to adopt Chinese currency Yuan
258) RBI created Dedicated Helpline for guiding Start-ups in India on Forex Matters
259) CCEA approved investment of 5000 crore rupees into ONGC Videsh
260) FIFA’s Independent Ethics Committee banned Sepp Blatter, Michel Platini from football for 8
years
261) International Tennis Federation announced winners of 2015 World Champions
Men’s World Champion - Novak Djokovic (Serbia)
Women’s World Champion - Serena Williams (the USA)
Men’s Doubles World Champions - Jean-Julien Rojer (Netherlands) & Horia Tecau (Romania)
Women’s Doubles World Champions - Martina Hingis (Switzerland) & Sania Mirza (India)
ITF Junior World Champions - Dalma Galfi (Hungary) & Taylor Fritz (the USA)
ITF Wheelchair World Champions - Jiske Griffioen (Netherlands) & Shingo Kunieda (Japan)
262) Union HRD Ministry launched the 6th All India Survey on Higher Education
263) Odisha Government launched Anwesha scheme to provide free education to SC/ST students
264) SpaceX successfully launched and landed Falcon 9 rocket
265) Delhi Government appointed Gopal Subramanium Commission on DDCA scam
266) 10th WTO Ministerial Conference adopted Nairobi Packag. The five-day long 10th World
Trade Organisation (WTO) Ministerial Conference concluded on 19 December 2015 in Nairobi,
Kenya.
267) China launched DAMPE satellite to shed light on mysterious dark matter
268) Andy Murray won 2015 BBC Sports Personality of the Year Award
269) Miss Spain Mireia Lalaguna Royo crowned Miss World 2015
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 8
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
270) Miss Iraq beauty pageant held for the first time since 1972 Shaymaa Qasim Abdelrahman was
crowned Miss Iraq
271) Kane Williamson became first-ever Kiwi batsman to top ICC Test rankings
272) PFRDA switches to PAN for online enrolment under NPS
273) Jeff Williams appointed as Chief Operating Officer of Apple Inc
274) Harvard University’s Public Health School opening Mumbai centre
275) 2nd World Internet Conference concluded in Wuzen, China
276) Mumbai’s iconic Marine Drive turns 100
277) Narendra Modi hands over Shyamji’s UK Bar certificate to CM Anandiben Patel
278) American University announces APJ Abdul Kalam Fellowship for Indian students
279) International Migrants Day was observed across the world on 18 December 2015
280) The Open Government Partnership (OGP) on 16 December 2015 selected Indian-origin World
Bank official Sanjay Pradhan to lead the organization
281) MLAs of Arunachal Pradesh Assembly passed resolution to remove Speaker Nabam Rebia
282) AP Shah Committee appointed to look into ONGC, RIL dispute on KG gas fields
283) Bose Brothers and Indian Independence – An Insider’s Account authored by Madhuri Bose
284) IRCTC ties up with Paytm for e-catering payments
285) Lalit Modi back as Rajasthan Cricket Association president
286) Rohit Sharma to launch cricket comic series 'Hyper Tygers’
287) Axis Bank holds Cyclothon to create awareness on cyber crime
288) Disha Microfin, Future Financial to merge before starting bank
289) Tech Mahindra launches NFC-based wallet MoboMoney
290) DBS opens new subsidiary in India
291) Lakshmi Vilas Bank names P Mukherjee as new MD & CEO
292) Axis Bank to offer electronic signature facility ‘e-sign’ to its customers
293) SBI welcomes new base rate calculation bhimethodology.The new methodology will be effective
April 1, 2016.
NEW APPOINTMENT
1. Arun Kumar Jain appointed Central Board of Direct Taxes Chairman
2. Mumbai Police Commissioner Ahmad Javed appointed as Ambassador to Saudi Arabia
3. Mauricio Macri Blanco sworn in as President of Argentina Justice Tirath Singh Thakur sworn in as 43rd
Chief Justice of India
4. Sir Venkatraman Ramakrishnan assumed Presidency of the Royal Society
5. Patricia Scotland appointed as Secretary General of Commonwealth of Nations
6. Sunil Kanoria appointed as President of ASSOCHAM
7. Michael Keating appointed as Special Representative for Somalia and Head of UNSOM
8. Swati Dandekar appointed Executive Director to Asian Development Bank
9. Harshavardhan Neotia elected as President of FICCI
10. Syed Akbaruddin appointed as next Permanent Representative of India to UN
11. RBI Governor Dr Raghuram Rajan elected as Vice- Chairman on BIS Board
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 9
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
12. Subir Gokarn appointed as IMF's Executive Director
13. Justice AP Shah appointed as the Ethics Officer (Ombudsman) at BCCI
14. Indian-born Harjit Sajjan sworn-in as Defence Minister of Canada
15. Navtej Singh Sarna appointed as Indian High
Commissioner to United Kingdom
16. Suresh N Patel appointed as MD & CEO of Andhra Bank Captain Krishna Swaminathan took over
command of aircraft carrier INS Vikramaditya
17. Deepak Singhal appointed Executive Director of Reserve Bank of India
18. AK Jha took over as CMD of Mahanadi Coalfields Limited Air Marshal Virender Mohan Khanna took
over as Maintenance Head of IAF
19. Paul Ryan elected as 54th Speaker of US House of Representatives
20. Shaktikanta Das nominated on RBI Central Board of Directors
21. Najib Shah appointed as Chairman of CBEC
22. Sylvie Lucas appointed as Chair of the IGN on UNSC reforms
23. US President designated Brett McGurk as Envoy to US- led coalition fighting ISIS
24. Indian-origin Ashok-Alexander Sridharan sworn in as mayor of Bonn in Germany
25. Justice Vaiphei appointed as acting Chief Justice of the Gauhati High Court
26. VK Malhotra appointed as head of the All India Council of Sports
27. MK Surana appointed as the CMD of Hindustan Petroleum Corp Ltd
28. Onsari Gharti Magar elected as House speaker of Nepal
29. Kundhavi Kadiresan appointed as FAO Assistant Director-General
30. PS Jayakumar appointed as MD and CEO of Bank of Baroda
31. Alkesh Sharma appointed as CEO and MD of Delhi- Mumbai Industrial Corridor Development Corp.
32. Telenor appointed Sharad Mehrotra as India CEO
33. Tapan Ray appointed to Board of Securities and Exchange Board of India
34. Sekhar Basu appointed as chairman of Atomic Energy Commission
35. Fiji’s Parliament elected the Minister for Employment, Productivity and Industrial Relations, Jioji
Konrote, as the country’s next President.
36. Music composer AR Rahman named as Cultural Ambassador of Seychelles
37. Shashank Manohar elected BCCI President
38. K.P. Sharma Oli was elected as the new Prime Minister of Nepal as he defeated Sushil Koirala.
39. Cabinet Minister Rao Inderjit Singh has been appointed unopposed as the new President of the
Paralympics Committee of India (PCI).
40. Steve Simon has been named as the new Chief Executive of the Women's Tennis Association (WTA).
41. South Korea's Hoesung Lee has been elected as the new head of the Intergovernmental Panel on
Climate Change (IPCC), the UN body tasked with assessing climate science at its 42nd session in
Dubrovnik, Croatia.
42. Ashish Bahuguna, the Chairman of the Food Safety and Standards Authority of India (FSSAI), was
given an additional charge of Chief Executive Officer (CEO) of FSSAI.
43. Ajay Sharma, an Indian-origin diplomat, has been appointed the new British Ambassador to Qatar.
44. Flipkart has appointed Sriram Venkataraman as the CFO for its commerce platform and Pramod Jain
as Vice President and Head of Taxation.
45. Sarat Kumar Acharya assumed office as Chairman and Managing Director Neyveli Lignite Corp. Ltd.
and Chairman at National Institute of Personnel Management.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 10
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Computer Awareness
TYPES OF COMPUTER
On the basis of working principle there are three types of computers.
a) Analog Computer
An analog computer (spelt analogue in British English) is a form of computer that uses continuous
physical phenomena such as electrical, mechanical or hydraulic quantities to model the problem being
solved.
1. Thermometer 2. Speedometer 3. Petrol Pump Indicator 4. Multi meter
b) Digital Computer
A computer that performs calculations and logical operations with quantities represented as digits,
usually in the binary number system.
c) Hybrid Computer (Analog + Digital)
A combination of computers those are capable of inputting and outputting in both digital and analog
signals. A hybrid computer system setup offers a cost effective method of performing complex
simulations.
ON THE BASIS OF SIZE.
a) Super Computer
It is the fastest computer. Supercomputers are very expensive and are employed for specialized
applications that require immense amounts of mathematical calculations.
For example, weather forecasting requires a supercomputer. Other uses of supercomputers
include animated graphics, fluid dynamic calculations and nuclear energy research and petroleum
exploration.
The major difference between a supercomputer and a mainframe is that a supercomputer channels
all its power into executing a few programs as fast as possible, whereas a mainframe uses itspower to
execute many programs concurrently.
b) Mainframe Computer
A very large and expensive computer capable of supporting hundreds and even thousands of users
simultaneously. In the hierarchy that starts with a simple microprocessor (Eg: in watches) at the
bottom and moves to supercomputers at the top, mainframes are just below supercomputers. In
some ways, mainframes are more powerful than supercomputers because they support more
simultaneous programs. But supercomputers can execute a single program
faster than a mainframe.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 11
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
c) Mini Computer
In size and power, minicomputers lie between workstations and mainframes. In the past decade, the
distinction between large minicomputers and small mainframes has blurred, however, as has the
distinction between small minicomputers and workstations. But in general, a minicomputer is a
multiprocessing system capable of supporting from 4 to about 200
users simultaneously.
d) Micro Computer
i. Desktop Computer: A personal or micro-mini computer sufficient to fit on a desk.
ii. Laptop Computer: A portable computer complete with an integrated screen and keyboard. It is
generally smaller in size than a desktop computer and larger than
a notebook computer.
iii. Palmtop Computer/ Digital Diary/ Notebook / PDAs:Ahandsized computer. Palmtops have no
keyboard but the screen serves both as an input and output device.
e) Workstations
It is a terminal or desktop computer in a network. In this context, workstation is just a generic term
for a user's machine (client machine) in contrast to a "server" or "mainframe."
MAJOR BRANDS OF THE COMPUTER:
a) IBM/ IBM Compatible Computers
b) Apple/ Macintosh.
COMPUTER KNOWLEDGE
GENERATION OF COMPUTERS
It is important to realize that major changes and trends in computer systems have occurred during the
major stages-or generations-of computing, and will continue into the future. The first generation of
computers developed in the early 1950s, the second generation blossomed during the late 1960s, the
third generation took computing into the 1970s, and the fourth generation has been the computer
technology of the 1980s and 1990s. A fifth generation of computers that accelerates the trends of the
previous generations is expected to evolve as we enter the 21st century. Notice that computers
continue to become smaller, faster, more reliable, less costly to purchase and maintain, and more
interconnected within computer networks.
First-generation computing involved massive computers using hundreds or thousands of vacuum tubes
for their processing and memory circuitry. These large computers generated enormous amounts of heat;
their vacuum tubes had to be replaced frequently. Thus, they had large electrical power, air
conditioning, and maintenance requirements. First-generation computers had main memories of only a
few thousand characters and millisecond processing speeds. They used magnetic drums or tape for
secondary storage and punched cards or paper tape as input and output media.
Second-generation computing used transistors and other solid-state, semiconductor devices that were
wired to circuit boards in the computers. Transistorized circuits were much smaller and much more
reliable, generated little heat, were less expensive, and required less power than vacuum tubes. Tiny
magnetic cores were used for the computer’s memory, or internal storage. Many second-generation
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 12
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
computers had main memory capacities of less than 100 kilobytes and microsecond processing, speeds.
Removable magnetic disk packs were introduced, and magnetic tape merged as the major input, output,
and secondary storage medium for large computer installations.
Third-generation computing saw the development of computers that used integrated circuits, in which
thousands of transistors and other circuit elements are etched on tiny chips of silicon. Main memory
capacities increased to several megabytes and processing speeds jumped to millions of instructions per
second (MIPS) as telecommunications capabilities became common. This made it possible for operating
system programs to come into widespread use that automated and supervised the activities of many
types of peripheral devices and processing by mainframe computers of several programs at the same
time, frequently involving networks of users at remote terminals. Integrated circuit technology also
made possible the development and widespread use of small computers called minicomputers in the
third computer generation.
Fourth-generation computing relies on the use of LSI (large-scale integration) and VLSI (very-large-scale
integration) technologies that cram hundreds of thousands or millions of transistors and other circuit
elements on each chip. This enabled the development of microprocessors, in which all of the circuits of a
CPU are contained on a single chip with processing speeds of millions of instructions per second. Main
memory capacities ranging from a few megabytes to several gigabytes can also be achieved by memory
chips that replaced magnetic core memories. Microcomputers, which use microprocessor CPUs and a
variety of peripheral devices and easy-to-use software packages to form small personal computer (PC),
systems or client/server networks of linked PCs and servers, are a hallmark of the fourth generation of
computing, which accelerated the downsizing of computing systems.
Whether we are moving into a fifth generation of computing is a subject of debated since the concept
of generations may no longer fit the continual, rapid changes occurring in computer hardware, software,
data, and networking technologies. But in any case, we can be sure that progress in computing will
continue to accelerate, and that the development of Internet-based technologies and applications will
be one of the major forces driving computing into the 21st century.
COMPUTER SYSTEM CONCEPTS AND COMPONENTS
The Computer System Concept :
A computer is more than a high-powered collection of electronic devices performing a variety of
information processing chores. A computer is a system, an interrelated combination of components that
performs the basic system functions of input, processing, output, storage, and control, thus providing
end users with a powerful information processing tool. Understanding the computer as a computer
system is vital to the effective use and management of computers.
A computer is system of hardware devices organized according to the following system functions.
Input :
The input devices of a computer system include keyboards, touch screens, pens, electronic mice, optical
scanners, and so on.
Processing :
The central processing unit( CPU) is the main processing component of a computer system. (In
microcomputers, it is the main microprocessor.) In particular, the electronic circuits of the arithmeticlogic unit one of the CPU’s major components, perform the arithmetic and logic functions required in
computer processing.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 13
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Output :
The output devices of a computer system include video display units, printers, audio response units ,
and so on, They convert electronic information produced by the computer system into human
intelligible form for presentation to end users.
Storage :
The storage function of a computer system takes place in the storage circuits of the computer’s primary
storage unit, or memory, and in secondary storage devices such as magnetic disk and tape units. These
devices store data and program instructions needed for processing.
Control :
The control unit of the CPU is the control component of a computer system. Its circuits interpret
computer program instructions and transmit directions to the other components of the computer
system.
Central Processing Unit :
The central processing unit is the most important hardware component of a computer system. It is also
known as the CPU, the central processor or instruction processor, and the main microprocessor in a
microcomputer. Conceptually, the circuitry of a CPU can be subdivided into two major subunits the
arithmetic-logic unit and the control unit. The CPU also includes circuitry for devices such as registers
and cache memory for high speed, temporary storage of instruction operations, input/output, and
telecommunications support.
The control unit obtains instructions from software segments stored in the primary storage unit and
interprets them. Then it transmits electronic signals to the other components of the computer system to
perform required operations. The arithmetic-logic unit performs required arithmetic and comparison
operations .A computer can make logical changes from one set of program instructions to another (e.g,
overtime pay versus regular pay calculations) based on the results of comparisons made in the ALU
during processing.
Main Memory and Primary Storage Unit :
A computer’s primary storage unit is commonly called main memory, and holds data and program
instructions between processing steps and supplies them to the control unit and arithmetic-logic unit
during processing. Most of a computer’s memory consists of microelectronic semiconductor memory
chips known as RAM (random access memory ). The contents of these memory chips can be instantly
changed to store new data. Other, more permanent memory chips called ROM (read only memory) may
also be used.
Secondary storage devices like magnetic disks and optical disks are used to store data and programs and
thus greatly enlarge the storage capacities of computer system. Also, since memory circuits typically lose
their contents when electric power is turned off, most secondary storage media provide a more
permanent type of storage. However the contents of hard disk drives floppy disks, CD-ROM disks, and
other secondary storage media cannot be processed without first being brought into memory. Thus
secondary storage devices play a supporting role to the primary storage of a computer system.
Multiple Processors :
Many current computers, from microcomputers to large mainframes, use multiple processors for their
processing functions. Instead of having one CPU with a single control unit and arithmetic-logic unit, the
CPUs of these computers contain several type of processing units. Let’s briefly look at the major types of
such multiprocessor designs.
A support processor design relies on specialized microprocessors to help the main CPU perform a variety
of functions. These microprocessors may used for input/output, memory management, arithmetic
computations, multimedia processing, and telecommunications, thus freeing the main processor to do
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 14
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
the primary job of executing program instructions For example, many microcomputers rely on support
microprocessors such as arithmetic co-processing load on their main microprocessors. A large computer
may use support microprocessors called channels to control the movement of data between the CPU
and input/output devices. Advanced microprocessor designs integrate the functions of several support
processors on a single main microprocessor.
A coupled processor design uses multiple CPUs or main microprocessors to do multiprocessing, that is,
executing more than one instruction at the same time. Some configurations provide a fault-tolerant
capability in which multiple CPUs provide a built-in backup to each other should one of them fail.
A parallel processor design uses a group of instruction processors to execute several program
instructions at the same time. Some times, hundreds or thousands of processors are organized in
clusters or networks in massively parallel processing (MPP) computers. Other parallel processor designs
are based on simple models of the human brain called neural networks. All of these systems can execute
many instructions at a time in parallel. This is a major departure from the traditional design of current
computers, called the Von Neuman design, which executes instructions serially (one at a time). Though
difficult to program, many experts consider parallel processor systems the key to providing advanced
capabilities to future generations of computers.
RISC Processors :
Many advanced technical workstations and other computers rely on a processor design called RISC
(reduced instruction set computer). This contrasts with most current computers that use CISC (complex
instruction set computer) processors. RISC processor designs optimize a CPU’s processing speed by using
a smaller instruction set. That is, they use a smaller number of the basic machine instruction that a
processor is capable of executing. By keeping the instruction set simpler than CISC processors and using
more complex software, a RISC processor can reduce the time needed to execute program instructions.
Computer Processing Speeds :
Computer operating speeds that were formerly measured in milliseconds (thousands of a second) and
microseconds (millionths of a second) are now in the nanosecond (billionth of a second) range, with
pico second (trillionth of a second) speed being attained by some computers. Such speeds seem almost
incomprehensible. For example, an average person taking one step each nanosecond would circle the
earth above 20 times in one second. Many microcomputers and midrange computers, and most
mainframe computers, operate in the nanosecond range, and can thus process program instructions at
million instructions per second (MIPS) speeds. Another measure of processing speed is megahertz
(MHs), or millions of cycles per second. It is commonly called the clock speed of a microprocessor, sine it
is used to rate microprocessors by the speed of their timing circuits or internal clock.
However, megahertz, ratings can be misleading indicators of the effective processing speed of
microprocessors as measured in MIPS and other measures. That’s because processing speed depends on
a variety of factors besides a microprocessor’s clock speed. Important examples include the size of
circuitry paths, or busses, that interconnect microprocessor components, the capacity of instruction
processing registers, the use of high-speed memory caches, and the use of specialized microprocessors
such as a math co-processor to do arithmetic calculations faster. For example, Intel’s Pentium
microprocessor runs at 66 to 200 MHz and is rated at over 100 MIPS, which the Pentium Pro
microprocessor has a top processing rating of over 200 MIPS at similar megahertz speeds.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 15
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
COMPUTER STORAGE FUNDEMENTALS AND DEVICES
Data and information must be stored until needed using a variety of storage methods. There are many
types of storage media and devices.
Computer Storage Fundamentals :
Data are processed and stored in a computer system through the presence or absence of electronic or
magnetic signals in the computer’s circuitry or in the media it uses. This is called a “two-state” or binary
representation of data, since the computer and the media can exhibit only two possible states or
conditions. For example, transistors other semiconductor circuits are either in a conducting or non
conducting state. Media such as magnetic disks and tapes indicate these two states by having
magnetized spots whose magnetic fields have one of two different directions, or polarities. This binary
characteristic of computer circuitry and media is what makes the binary number system the basis for
representing data in computers. Thus, for electronic circuits, the conducting (ON) state represents the
number one, while the non conducting (OFF) state represents the number zero. For magnetic media, the
magnetic field of a magnetized sport in one direction represents a one, while magnetism in the other
direction represents a zero.
The smallest element of data is called a bit, which can have a value of either zero or one. The capacity of
memory chips is usually expressed in terms of bits. A byte is a basic grouping of bits that the computer
operates as a single unit. Typically, it consists of eight bits and represents one character of data in most
computer coding schemes. Thus, the capacity of a computer’s memory and secondary storage device is
usually expressed in terms of bytes. Computer codes such as ASCII (American Standard Code for
Information Interchange) use various arrangements of bits to form bytes that represent the numbers
zero through nine, the letters of the alphabets, and many other characters.
Storage capacities are frequently measured in kilobytes (KB), megabytes (MB), gigabytes (GB), or
terabytes (TB). Although kilo means 1,000 in the metric system, the computer industry uses K to
represents 1,024 or (210) storage positions. Therefore, a capacity of 10 megabytes, for example, is really
10,485,760 storage positions, rather than 10 million positions. However, such differences are frequently
disregarded in order to simplify descriptions of storage capacity. Thus, a megabyte is roughly 1 million
bytes of storage, while a gigabyte is roughly 1 billion bytes and a terabyte represents about 1 trillion
bytes.
Direct and Sequential Access :
Primary storage media such as semiconductor memory chips are called direct access or random access
memories (RAM). Magnetic disk devices are frequently called direct access storage devices (DASDs). On
the other hand, media such as magnetic tapes are known as sequential access devices.
The term direct access and random access describe the same concept. They mean that an element of
data or instructions (such as a byte or word) can be directly stored and retrieved by selecting and using
any of the locations on the storage media. They also mean that each storage position (1) has a unique
address and (2) can be individually accessed in approximately the same length of time without having to
search through other storage positions. For example, each memory cell on a microelectronic
semiconductor RAM chip can be individually sensed or changed in the same length of time. Also any
data record stored on a magnetic or optical disk can be accessed directly in approximately the same
time period.
Sequential access storage media such as magnetic tape do not have unique storage addresses that can
be directly addressed. Instead, data must be stored and retrieved using a sequential or serial process.
Data are recorded one after another in a predetermined sequence (such as in numeric order) on a
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 16
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
storage medium. Locating an individual item of data requires searching much of the recorded data on
the tape until the desired item is located.
Semiconductor Memory :
The primary storage (main memory) of your computer consists of microelectronic semiconductor
memory chips. Memory chips with capacities of 4 million bits (4 megabits) and 16 megabytes or more of
memory chips can be added to your PC to increase its memory capacity. Specialized memory can help
improve your computer’s performance. Examples include external cache memory of 256 or 512
kilobytes to help your microprocessor work faster, or a video graphics accelerator card with 2
megabytes or more of RAM for faster and clearer video performance. Removable credit-card-size and
smaller “flash memory” RAM cards can also provide several megabytes of erasable direct access storage
for PDAs or handheld PCs.
Some of the major attractions of semiconductor memory are its small size, great speed, and shock and
temperature resistance. One major disadvantage of most semiconductor memory is its volatility.
Uninterrupted electric power must be supplied or the contents of memory will be lost. Therefore,
emergency transfer to other devices or standby electrical power (through battery packs or emergency
generators) is required if data are to be saved. Another alternative is to permanently “burn in” the
contents of semiconductor devices so that they cannot be erased by a loss of power.
Thus, there are two basic types of semiconductor memory: random access memory (RAM) and read only
memory (ROM).
RAM :
random access memory. These memory chips are the most widely used primary storage medium. Each
memory position can be both sensed (read) and changed (written), so it is also called read/write
memory. This is a volatile memory.
ROM :
read only memory. Nonvolatile random access memory chips are used for permanent storage. ROM can
be read but not erased or overwritten.
Frequently used control instructions in the control unit and programs in primary storage (such as parts
of the operating system) can be permanently burned in to the storage cells during manufacture. This is
sometimes called firmware. Variations include PROM (programmable read only memory) and EPROM
(erasable programmable read only memory) that can be permanently or temporarily programmed after
manufacture.
Magnetic Disk Storage :
Magnetic disks are the most common form of secondary storage for your computer system. That’s
because they provide fast access and high storage capacities at a reasonable cost. Magnetic disk drives
contain metal disks that are coated on both sides with an iron oxide recording material. Several disks are
mounted together on a vertical shaft, which typically rotates the disks at speeds of 3,600 to 7,600
revolutions per minute (rpm). Electromagnetic read/write heads are positioned by access arms between
the slightly separated disks to read and write data on concentric, circular tracks. Data are recorded on
tracks in the form of tiny magnetized spots to form the binary digits of common computer codes.
Thousands of bytes can be recorded on each tracks, and there are several hundred data tracks on each
disk surface, thus providing you with billions of storage positions for your software and data.
Types of Magnetic Disks :
There are several types of magnetic disk arrangements, including removable disk cartridges as well as
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 17
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
fixed disk units. Removable disk devices are popular because they are transportable and can be used to
store backup copies of your data offline for convenience and security.
Floppy disks or magnetic diskettes, consist of polyester film disks covered with an iron oxide compound.
A single disk is mounted and rotates freely inside a protective flexible or hard plastic jacket, which has
access openings to accommodate the read/write head of a disk drive unit. The 31/2 inch floppy disk,
with capacities of 1.44 megabytes, is the most widely used version, with a newer LS-120 technology
offering 120 megabytes of storage.
Hard disk drives combine magnetic disks, access arms, and read/write heads into a sealed module. This
allows higher speeds, greater data-recording densities, and closer tolerances within a sealed, more
stable environment. Fixed or removable disk cartridge versions are available. Capacities of hard drives
range from several hundred megabytes to gigabytes of storage.
RAID :
Disk arrays of interconnected microcomputer hard disk drives have replaced large-capacity mainframe
disk drives to provide many gigabytes of online storage. Known as RAID (redundant arrays of
independent disks), they combine from 6 to more than 100 small hard disk drives and their control
microprocessors into a single unit. RAID units provide large capacities with high access speeds since data
are accessed in parallel over multiple paths from many disks. RAID units also provide a fault tolerant
capability, since their redundant design offers multiple copies of data on several disks. If one disk fails,
data can be recovered from backup copies automatically stored on other disks.
Magnetic Tape Storage :
Magnetic tape is still being used as a secondary storage medium in business applications. They
read/write heads of magnetic tape drives record data in the form of magnetized spots on the iron oxide
coating of the plastic tape. Magnetic tape devices include tape reels and cartridges in mainframes and
midrange systems, and small cassettes or cartridges for PCs. Magnetic tape cartridges have replaced
tape reels in many applications, and can hold over 200 megabytes.
One growing business application of magnetic tape involves the use of 36-track magnetic tape cartridges
in robotic automated drive assemblies that can hold hundreds of cartridges. These devices serve as
slower, but lower cost, storage to supplement magnetic disks to meet massive data warehouse and
other business storage requirements. Other major applications for magnetic tape includes long-term
archival storage and backup storage for PCs and other systems.
Optical Disk Storage :
Optical disks are a fast-growing storage medium. The version for use with micro computers is called CDROM (compact disk- read only memory). CD-ROM technology use 12-centimeter (4.7 inch) compact
disks (CDs) similar to those used in stereo music systems. Each disk can store more than 600 megabytes.
That’s the equivalent of over 400 1.44 megabyte floppy disks or more than 300,000 double-spaced
pages of text. A laser records data by burning permanent microscopic pits in a spiral track on a master
disk from which compact disks can be mass produced. Then CD-ROM disk drives use a laser device to
read the binary codes formed by those pits.
CD-R (compact disk – record able) is another optical disk technology. It enables computers with CD-R
disk drive units to record their own data once on a CD, then be able to read the data indefinitely. The
major limitation of CD-ROM and CD-R disks is that recorded data cannot be erased. However, CD-RW
(CD-rewritable) optical disk systems have now become available which record and erase data by using a
laser to heat a microscopic point on the disk’s surface. In CD-RW versions using magneto optical
technology, a magnetic coil changes the spot’s reflective properties from one direction to another, thus
recording a binary one or zero. A laser device can then read the binary codes on the disk by sensing the
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 18
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
direction of reflected light.
Optical disk capacities and capabilities have increased dramatically with the emergence of an optical
disk technology called DVD (digital video disk or digital versatile disk), which can hold from 4.0 to 8.5
gigabytes of multimedia data on each side of a compact disk. The large capacities and high quality
images and sound of DVD technology are expected to eventually replace CD-ROM and CD-RW
technologies for data storage, and promise to accelerate the sue of DVD drives for multimedia products
that can be used in both computers and home entertainment systems.
Blu-Ray and HD-DVD are two new optical storage technologies that fight as the successor of DVD. Both
HD-DVD and Blu-ray are high-definition optical disc formats, incompatible with each other. They were
meant to replace the existing DVD format, which was and still is used by a large user community. HDDVDs and Blu-ray discs are similar in terms of the higher storage capacities and a superior picture quality
offered by them. Their storage capacities are higher than those of CDs and DVDs. However, a single layer
HD-DVD can store 15 GB data whereas a single-layer Blu-ray disc stores 25 GB data.
MAJOR TYPES OF COMPUTER SYSTEMS
Microcomputer Systems :
Microcomputers are the most important category of computer systems for end users. Though usually
called a personal computer, or PC, a microcomputer is much more than a small computer for use by an
individual. The computing power of microcomputers now exceeds that of the mainframes of previous
computer generations at a fraction of their cost. Thus, they have become powerful networked
professional work stations for end users in business.
Microcomputers come in a variety of sizes and shapes for a variety of purposes. For example, PCs are
available as handhled, notebook, laptop, portable, desktop, and floor-standing models. Based on their
use, they include home, personal, professional, workstation, and multi-user systems. Most
microcomputers are desktops designed to fit on an office desk, or notebooks for those who want a
small, portable PC for their work activities.
Some microcomputers are powerful workstation computers (technical work-stations) that support
applications with heavy mathematical computing and graphics display demands such as computer-aided
design (CAD) in engineering, or investment and portfolio analysis in the securities industry. Other
microcomputers are used as network servers. They are usually more powerful microcomputers that
coordinate telecommunications and resource sharing in small local area networks (LANs), and Internet
and intranet Web sites. Another important microcomputer category includes handheld microcomputer
devices known as personal digital assistants (PDAs), designed for convenient mobile communications
and computing. PDAs use touch-screens, pen-based handwriting recognition of keyboards to help
mobile workers send and receive E-mail and exchange information such as appointments, to do lists,
and scales contacts with their desktop PCs or Web servers.
Multimedia Computer Systems :
Multimedia PCs are designed to present you with information in a variety of media, including text and
graphics displays, voice and other digitized audio, photographs, animation, and video clips. Mention
multimedia, and many people think of computer video games, multimedia encyclopedias, educational
videos, and multimedia home pages on the World Wide Web. However, multimedia systems are widely
used in business for training employees, educating customers, making sales presentations, and adding
impact to other business presentations.
The basic hardware and software requirements of a multimedia computer system depend on whether
you wish to create as well as enjoy multimedia presentations. Owners of low-cost multimedia PCs
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 19
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
marketed for home used do not need authoring software or high-powered hardware capacities in order
to enjoy multimedia games and other entertainment and educational multimedia products. These
computers come equipped with a CD-ROM drive, stereo speakers, additional memory, a highperformance processor, and other multimedia processing capabilities.
People who want to create their own multimedia production may have to spend several thousand
dollars to put together a high-performance multimedia authoring system. This includes a high-resolution
color graphics monitor, sound and video capture boards, a high-performance microprocessor with
multimedia capabilities, additional megabytes of memory, and several gigabytes of hard disk capacity.
Sound cards and video capture boards are circuit boards that contain digital signal processors (DSPs) and
additional megabytes of memory for digital processing of sound and video. A digital camera, digital
video camcorder, optical scanner, and software such as authoring tools and programs for image editing
and graphics creation can add several thousand dollars to the star-up costs of a multimedia authoring
system.
Midrange Computer Systems :
Midrange Computers, including minicomputers and high-end network servers, are multi-user systems
that can manage network of PCs and terminals. Though not as powerful as mainframe computers, they
are less costly to buy, operate, and maintain than mainframe systems, and thus meet the computing
needs of many organizations.
Midrange computers first became popular as minicomputers for scientific research, instrumentation
systems, and industrial process monitoring and control. Minicomputers could easily handle such uses
because these applications are narrow in scope and do not demand the processing versatility of
mainframe systems. Thus, midrange computers serve as industrial process-control and manufacturing
plant computers, and they still play a major role in computer-aided manufacturing (CAM). They can also
take the form of powerful technical workstations for computer-aided design (CAD) and other
computation and graphics-intensive applications. Midrange computers are also used as front-end
computers to assist mainframe computers in telecommunication processing and network management.
Midrange computers have become popular as powerful network servers to help manage large Internet
Web sites, corporate intranets and extranets, and client/server networks. Electronic commerce and
other business uses of the Internet are popular high-end server applications, as are integrated
enterprise wide manufacturing, distribution and financial applications. Other applications, like data
warehouse management, data mining, and online analytical processing.
Mainframe Computer Systems :
Mainframe computes are large, fast, and powerful computer systems. For example, mainframes can
process hundreds of million instructions per second (MIPS). Mainframes also have large primary storage
capacities. Their main memory capacity can range from hundreds of megabytes to many gigabytes of
primary storage. And mainframes have slimmed down drastically in the last few years, dramatically
reducing their air-conditioning needs, electrical power consumption, and floor space requirements, and
thus their acquisition and operating costs. Most of these improvements are the result of a move from
water-cooled mainframes to a new CMOS air-cooled technology for mainframe systems.
Thus, mainframe computers continue to handle the information processing needs of major corporations
and government agencies with many employees and customers or with complex computational
problems. For example, major international banks, airlines, oil companies, and other large corporations
process millions of sales transactions and customer inquiries each day with the help of large mainframe
systems. Mainframes are still used for computation-intensive applications such as analyzing seismic data
from oil field explorations or simulating flight conditions in designing aircraft. Mainframes are also
widely used as super server for the large client/server network and high-volume Internet Web sites of
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 20
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
large companies.
Supercomputer Systems :
The term supercomputer describes a category of extremely powerful computer systems specifically
designed for scientific ,engineering, and business applications requiring extremely high speeds for
massive numeric computations. The market for supercomputers includes government research
agencies, large universities, and major corporations. They use supercomputers for applications such as
global weather forecasting, military defense systems, computational cosmology and astronomy,
microprocessor research and design, large-scale data mining and so on.
Supercomputers use parallel processing architectures of interconnected microprocessors (which can
execute many instructions at the same time in parallel). They can perform arithmetic calculations at
speeds of billions of floating-point operations per second (gigaflops). Teraflop (1 trillion floating-point
operations per second) supercomputers, which use advanced massively parallel processing (MPP)
designs of thousands of interconnected microprocessors, are becoming available. Purchase prices for
large supercomputers are in the $5 million to $50 million range.
However, the use of symmetric multiprocessing (SMP) and distributed shared memory (DSM) designs of
smaller numbers of interconnected microprocessors has spawned a breed of minisuper computers with
prices that start in the hundreds of thousands of dollars.
INTERNET
The concept of data communication - transmitting data between two different places, connected via
some kind of electromagnetic medium, such as radio or an electrical wire - actually predates the
introduction of the first computers. Such communication systems were typically limited to point to point
communication between two end devices. Telegraph systems and telex machines can be considered
early precursors of this kind of communication. The earlier computers used the technology available at
the time to allow communication between the central processing unit and remote terminals. As the
technology evolved new systems were devised to allow communication over longer distances (for
terminals) or with higher speed (for interconnection of local devices) that were necessary for the
mainframe computer model. Using these technologies it was possible to exchange data (such as files)
between remote computers. However, the point to point communication model was limited, as it did
not allow for direct communication between any two arbitrary systems; a physical link was necessary.
The technology was also deemed as inherently unsafe for strategic and military use, because there were
no alternative paths for the communication in case of an enemy attack.
As a response, several research programs started to explore and articulate principles of communications
between physically separate systems, leading to the development of the packet switching model of
digital networking. These research efforts included those of the laboratories of Vinton G. Cerf at
Stanford University, Donald Davies (NPL), Paul Baran (RAND Corporation), and Leonard Kleinrock at MIT
and at UCLA. The research led to the development of several packet-switched networking solutions in
the late 1960s and 1970s, including ARPANET, Telenet, and the X.25 protocols. Additionally, public
access and hobbyist networking systems grew in popularity, including unix-to-unix copy (UUCP) and
FidoNet. They were however still disjointed separate networks, served only by limited gateways
between networks. This led to the application of packet switching to develop a protocol for
internetworking, where multiple different networks could be joined together into a super-framework of
networks. By defining a simple common network system, the Internet Protocol Suite, the concept of the
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 21
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
network could be separated from its physical implementation. This spread of internetworking began to
form into the idea of a global network that would be called the Internet, based on standardized
protocols officially implemented in 1982. Adoption and interconnection occurred quickly across the
advanced telecommunication networks of the western world, and then began to penetrate into the rest
of the world as it became the de-facto international standard for the global network. However, the
disparity of growth between advanced nations and the third-world countries led to a digital divide that
is still a concern today.
Following commercialization and introduction of privately run Internet service providers in the 1980s,
and the Internet's expansion for popular use in the 1990s, the Internet has had a drastic impact on
culture and commerce. This includes the rise of near instant communication by electronic mail (e-mail),
text based discussion forums, and the World Wide Web. Investor speculation in new markets provided
by these innovations would also lead to the inflation and subsequent collapse of the Dot-com bubble.
But despite this, the Internet continues to grow, driven by commerce, greater amounts of online
information and knowledge and social networking known as Web 2.0.
General Search Engines
Alexa Web Search: analyzes site traffic including ranking, global users, pages linking to the site, and links
to related pages of interest
AllTheWeb : returns results quickly from a database gathered by the Yahoo! crawler; offers multimedia
and news searches; has a good advanced search interface
AltaVista : searches Web sites with advanced Boolean and field search options. See also Babel Fish, the
AltaVista translation service.
Ask.com : general search engine enhanced by a number of specialty searches including a dictionary,
thesaurus, currency converter, encyclopedia, maps, news and more
Bing : Microsoft engine that displays excerpts from sites retrieved by your search and offers related
search suggestions; multimedia and other deep Web results are also displayed. Bing focuses on searches
related to making a purchase decision, planning a trip, researching a health condition, and finding a local
business. Also check out Bing Maps Beta.
ChaCha : search engine that offers live human guides to help answer queries; focuses on questions from
mobile devices
Exalead : offers concept clustering of results, thumbnail images of retrieved sites, and customization
options such as organization of results by file type, geography or modification date
Factbites : searches for full topic matches and returns meaningful, full sentence excerpts of sites in its
results list
Google : Web's most popular search engine that retrieves results in real time as you type your search.
Also check out Eco Smart Search.com, a Google-powered search engine with a black background display
that saves energy.
Hakia : organizes results into types of information sources, including "credible " sites recommended by
librarians
iSEEK Education : offers authoritative resources from university, government, and established
noncommercial providers; organizes results into concept clusters, and also allows users to recommend
and rate sites
Lycos : general search engine that also offers searches of a few deep Web content sources including
people look-up, yellow pages, and multimedia
Quintura : displays a type of tag cloud with keywords related to your search that can be selected to
generate new results
Search Edu.com : service that limits results to the .edu, domain; also offers to search well-known
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 22
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
dictionaries, encyclopedias, almanacs, etc.
Snappy Fingers : searches millions of Frequently Asked Questions (FAQs) for answers to user queries
Sproose : searches Yahoo! and allows users to comment on and vote on its search results
Webbrain : offers results in visual layout of related terms for subsequent searching
Wolfram Alpha : enter a question or calculation, and Wolfram Alpha uses its built-in algorithms and own
collection of data to compute the answer
Yahoo : portal with a general Web search and many other content services.
COMPUTER VIRUS
A computer virus is a computer program that can copy itself and infect a computer. The term "virus" is
also commonly but erroneously used to refer to other types of malware, including but not limited to
adware and spyware programs that do not have the reproductive ability. A true virus can spread from
one computer to another (in some form of executable code) when its host is taken to the target
computer; for instance because a user sent it over a network or the Internet, or carried it on a
removable medium such as a floppy disk, CD, DVD, or USB drive.
Viruses can increase their chances of spreading to other computers by infecting files on a network file
system or a file system that is accessed by another computer.
As stated above, the term "computer virus" is sometimes used as a catch-all phrase to include all types
of malware, even those that do not have the reproductive ability. Malware includes computer viruses,
computer worms, Trojan horses, most rootkits, spyware, dishonest adware and other malicious and
unwanted software, including true viruses. Viruses are sometimes confused with worms and Trojan
horses, which are technically different. A worm can exploit security vulnerabilities to spread itself
automatically to other computers through networks, while a Trojan horse is a program that appears
harmless but hides malicious functions. Worms and Trojan horses, like viruses, may harm a computer
system's data or performance. Some viruses and other malware have symptoms noticeable to the
computer user, but many are surreptitious or simply do nothing to call attention to themselves. Some
viruses do nothing beyond reproducing themselves.
Recovery methods:
Once a computer has been compromised by a virus, it is usually unsafe to continue using the same
computer without completely reinstalling the operating system. However, there are a number of
recovery options that exist after a computer has a virus. These actions depend on severity of the type of
virus.
MICROSOFT OFFICE
Microsoft Office is an office suite of inter-related desktop applications, servers and services for the
Microsoft Windows and Mac OS X operating systems, introduced by Microsoft in 1989. Initially a
marketing term for a bundled set of applications, the first version of Office contained Microsoft Word,
Microsoft Excel, and Microsoft PowerPoint. Additionally, a "Pro" (Professional) version of Office included
Microsoft Access and Schedule Plus. Over the years, Office applications have grown substantially closer
with shared features such as a common spell checker, OLE data integration and Microsoft Visual Basic
for Applications scripting language. Microsoft also positions Office as a development platform for lineof-business software under the Office Business Applications (OBA) brand.
The current versions are Office 2010 for Windows which was released on June 15, 2010, and Office 2011
for Mac OS X, released October 26, 2010. Office 2007 and 2008 introduced a new user interface and
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 23
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
new Office Open XML document formats (docx, xlsx, pptx). Consequently, Microsoft has made available,
free of charge, an add-on known as the Microsoft Office Compatibility Pack to allow Office 2000-2003
for Windows and Office 2004 for Mac editions to open, edit, and save documents created under the
new formats for Office 2007.
Applications
Microsoft Word:
Microsoft Word is a word processor and was previously considered to be the main program in Office. Its
proprietary DOC format is considered a de facto standard, although Word 2007 can also use a new XMLbased, Microsoft Office-optimized format called .DOCX which has been standardized by Ecma
International as Office Open XML and its SP2 update will support ODF and PDF. Word is also available in
some editions of Microsoft Works. It is available for the Windows and Mac platforms. The first version of
Word, released in the autumn of 1983, was for the MS-DOS operating system and had the distinction of
introducing the mouse to a broad population. Word 1.0 could be purchased with a bundled mouse,
though none was required. Following the precedents of LisaWrite and MacWrite, Word for Macintosh
attempted to add closer WYSIWYG features into its package. Word for Mac was released in 1985. Word
for Mac was the first graphical version of Microsoft Word. Despite its bugginess, It became one of the
most popular Mac applications.
Microsoft Excel:
Microsoft Excel is a spreadsheet program which originally competed with the dominant Lotus 1-2-3, but
eventually outsold it. It is available for the Windows and Mac platforms. Microsoft released the first
version of Excel for the Mac in 1985, and the first Windows version (numbered 2.05 to line up with the
Mac and bundled with a standalone Windows run-time environment) in November 1987.
Microsoft Outlook and Microsoft Entourage:
Microsoft Outlook (not to be confused with Outlook Express) is a personal information manager and email communication software. The replacement for Windows Messaging, Microsoft Mail and Schedule+
starting in Office 97, it includes an e-mail client, calendar, task manager and address book. Office
Although historically it has been offered for the Mac, the closest to an equivalent for Mac OS X is
Microsoft Entourage, which offers a slightly different feature set. Office 2011 for Mac will reintroduce
Outlook, replacing Entourage.
Microsoft PowerPoint:
Microsoft PowerPoint is a popular presentation program for Windows and Mac. It is used to create
slideshows, composed of text, graphics, movies and other objects, which can be displayed on-screen and
navigated through by the presenter or printed out on transparencies or slides. This is convenient for
school or work presentations. Office Mobile for Windows Mobile 5.0 and later features a version of
PowerPoint called PowerPoint Mobile. Movies, videos, sounds and music, as well as Wordart and
Autoshapes can be added to slideshows.
Microsoft Publisher:
Microsoft Publisher is a program mostly used for designing brochures, labels, calendars, greeting cards,
business cards, newsletters, and postcards.
COMPUTER TERMINOLOGY 1
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 24
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
access time - The performance of a hard drive or other storage device - how long it takes to locate a file.
active program or window - The application or window at the front (foreground) on the monitor.
alert (alert box) - a message that appears on screen, usually to tell you something went wrong.
alias - an icon that points to a file, folder or application (System 7).
apple menu - on the left side of the screen header. System 6 = desk accessories System 7 = up to 50
items.
application - a program in which you do your work.
application menu - on the right side of the screen header. Lists running applications.
ASCII (pronounced ask-key ) - American Standard Code for Information Interchange. a commonly used
data format for exchanging information between computers or programs.
background - part of the multitasking capability. A program can run and perform tasks in the
background while another program is being used in the foreground.
bit - the smallest piece of information used by the computer. Derived from "binary digit". In computer
language, either a one (1) or a zero (0).
backup - a copy of a file or disk you make for archiving purposes.
boot - to start up a computer.
bug - a programming error that causes a program to behave in an unexpected way.
bus - an electronic pathway through which data is transmitted between components in a computer.
byte - a piece of computer information made up of eight bits.
card - a printed circuit board that adds some feature to a computer.
cartridge drive - a storage device, like a hard drive, in which the medium is a cartridge that can be
removed.
CD-ROM - an acronym for Compact Disc Read-Only Memory.
Chooser - A desk accessory used to select a printer, or other external device, or to log onto a network.
Clipboard - A portion of memory where the Mac temporarily stores information. Called a Copy Buffer in
many PC applications because it is used to hold information which is to be moved, as in word processing
where text is "cut" and then "pasted".
Clock Rate (MHz) - The instruction processing speed of a computer measured in millions of cycles per
second (i.e., 200 MHz).
command - the act of giving an instruction to your Mac either by menu choice or keystroke.
command (apple) key - a modifier key, the Command key used in conjunction with another keystroke to
active some function on the Mac.
compiler - a program the converts programming code into a form that can be used by a computer.
compression - a technique that reduces the size of a saved file by elimination or encoding redundancies
(i.e., JPEG, MPEG, LZW, etc.)
control key - seldom used modifier key on the Mac.
control panel - a program that allows you to change settings in a program or change the way a Mac
looks and/or behaves.
CPU - the Central Processing Unit. The processing chip that is the "brains" of a computer.
crash - a system malfunction in which the computer stops working and has to be restarted.
cursor - The pointer, usually arrow or cross shaped, which is controlled by the mouse.
daisy chaining - the act of stringing devices together in a series (such as SCSI).
database - an electronic list of information that can be sorted and/or searched.
data - (the plural of datum) information processed by a computer.
defragment - (also - optimize) to concatenate fragments of data into contiguous blocks in memory or on
a hard drive.
desktop - 1. the finder. 2. the shaded or colored backdrop of the screen.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 25
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
desktop file - an invisible file in which the Finder stores a database of information about files and icons.
dialog box - an on-screen message box that appears when the Mac requires additional information
before completing a command.
digitize - to convert linear, or analog, data into digital data which can be used by the computer.
disk - a spinning platter made of magnetic or optically etched material on which data can be stored.
disk drive - the machinery that writes the data from a disk and/or writes data to a disk.
disk window - the window that displays the contents or directory of a disk.
document - a file you create, as opposed to the application which created it.
DOS - acronym for Disk Operating System - used in IBM PCs.
DPI - acronym for Dots Per Inch - a gauge of visual clarity on the printed page or on the computer
screen.
download - to transfer data from one computer to another. (If you are on the receiving end, you are
downloading. If you are on the sending end, you are uploading ).
drag - to move the mouse while its button is being depressed.
drag and drop - a feature on the Mac which allows one to drag the icon for a document on top of the
icon for an application, thereby launching the application and opening the document.
driver - a file on a computer which tells it how to communicate with an add-on piece of equipment (like
a printer).
Ethernet - a protocol for fast communication and file transfer across a network.
expansion slot - a connector inside the computer which allows one to plug in a printed circuit board that
provides new or enhanced features.
extension - a startup program that runs when you start the Mac and then enhances its function.
fibre channel - as applied to data storage and network topology
file - the generic word for an application, document, control panel or other computer data.
finder - The cornerstone or home-base application in the Mac environment. The finder regulates the file
management functions of the Mac (copying, renaming, deleting...)
floppy - a 3.5 inch square rigid disk which holds data. (so named for the earlier 5.25 and 8 inch disks that
were flexible).
folder - an electronic subdirectory which contains files.
font - a typeface that contains the characters of an alphabet or some other letterforms.
footprint - The surface area of a desk or table which is occupied by a piece of equipment.
fragmentation - The breaking up of a file into many separate locations in memory or on a disk.
freeze - a system error which causes the cursor to lock in place.
get info - a Finder File menu command that presents an information window for a selected file icon.
gig - a gigabyte = 1024 megabytes.
hard drive - a large capacity storage device made of multiple disks housed in a rigid case.
head crash - a hard disk crash caused by the heads coming in contact with the spinning disk(s).
high density disk - a 1.4 MB floppy disk.
highlight - to select by clicking once on an icon or by highlighting text in a document.
icon - a graphic symbol for an application, file or folder.
initialize - to format a disk for use in the computer; creates a new directory and arranges the tracks for
the recording of data.
insertion point - in word processing, the short flashing marker which indicates where your next typing
will begin.
installer - software used to install a program on your hard drive.
interrupt button - a tool used by programmers to enter the debugging mode. The button is usually next
to the reset button.
K - short for kilobyte.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 26
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
keyboard shortcut - a combination of keystrokes that performs some function otherwise found in a
pulldown menu.
kilobyte - 1024 bytes.
landscape - in printing from a computer, to print sideways on the page.
launch - start an application.
Measurements (summary) *a bit = one binary digit (1 or 0) *"bit" is derived from the contraction b'it (binary digit) -> 8 bits = one
byte
*1024 bytes = one kilobyte
*K = kilobyte
*Kb = kilobit
*MB = megabyte
*Mb = megabit
*MB/s = megabytes per second
*Mb/s = megabits per second
*bps = bits per second
i.e., 155 Mb/s = 19.38 MB/s
MB - short for megabyte.
megabyte - 1024 kilobytes.
memory - the temporary holding area where data is stored while it is being used or changed; the
amount of RAM a computer has installed.
menu - a list of program commands listed by topic.
menu bar - the horizontal bar across the top of the Mac¹s screen that lists the menus.
multi finder - a component of System 6 that allows the Mac to multi task.
multi tasking - running more than one application in memory at the same time.
nanosecond - one billionth of a second. ( or, the time between the theatrical release of a Dudley Moore
film and the moment it begins to play on airplanes).
native mode - using the computers original operating system; most commonly used when talking about
the PowerPC can run software written for either the 80x0 systems, or the PowerPC¹s RISC code.
NuBus - expansion slots on the Mac which accept intelligent, self-configuring boards. NuBus is a
different bus achitecture than the newer PCI bus and the boards are not interchangable.
operating system - the system software that controls the computer.
optical disk - a high-capacity storage medium that is read by a laser light.
palette - a small floating window that contains tools used in a given application.
partition - a subdivision of a hard drives surface that is defined and used as a separate drive.
paste - to insert text, or other material, from the clipboard or copy buffer.
PC - acronym for personal computer, commonly used to refer to an IBM or IBM clone computer which
uses DOS.
PCI - acronym for Peripheral Component Interchange - the newer, faster bus achitecture.
peripheral - an add-on component to your computer.
point - (1/72") 12 points = one pica in printing.
pop-up menu - any menu that does not appear at the top of the screen in the menu bar. (may pop up or
down)
port - a connection socket, or jack on the Mac.
Power PC - a processing chip designed by Apple, IBM and Motorola (RISC based).
Power Mac - a family of Macs built around the PowerPC chip.
print spooler - a program that stores documents to be printed on the hard drive, thereby freeing the
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 27
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
memory up and allowing other functions to be performed while printing goes on in the background.
QuickTime - the Apple system extension that gives one the ability to compress, edit and play animation,
movies and sound on the Mac.
RAM - acronym for Random-Access Memory.
reset switch - a switch on the Mac that restarts the computer in the event of a crash or freeze.
resize box - the small square at the lower right corner of a window which, when dragged, resizes the
window.
RISC - acronym for Reduced Instruction Set Computing; the smaller set of commands used by the
PowerPC and Power Mac.
ROM - acronym for Read Only Memory; memory that can only be read from and not written to.
root directory - the main hard drive window.
save - to write a file onto a disk.
save as - (a File menu item) to save a previously saved file in a new location and/or with a new name.
scroll - to shift the contents of a window to bring hidden items into view.
scroll bar - a bar at the bottom or right side of a window that contains the scroll box and allows scrolling.
scroll box - the box in a scroll bar that is used to navigate through a window.
SCSI - acronym for Small Computer System Interface.
SCSI address - a number between zero and seven that must be unique to each device in a SCSI chain.
Fast and Wide SCSI devices will allow up to 15 SCSI Ids (hexidecimal); however, the length restriction (3
meters) is such that it is virtually impossible to link 15 devices together.
SCSI port - a 25 pin connector on the back of a Mac (native SCSI port); used to connect SCSI devices to
the CPU. Some SCSI cards (like the ATTO) have a 68 pin connector.
SCSI terminator - a device placed at the end of a SCSI chain to complete the circuit. (some SCSI devices
are self-terminating, or have active termination and do not require this plug).
serial port - a port that allows data to be transmitted in a series (one after the other), such as the printer
and modem ports on a Mac.
server - a central computer dedicated to sending and receiving data from other computers (on a
network).
shut down - the command from the Special menu that shuts down the Mac safely.
software - files on disk that contain instructions for a computer.
spreadsheet - a program designed to look like an electronic ledger.
start up disk - the disk containing system software and is designated to be used to start the computer.
surge suppressor - a power strip that has circuits designed to reduce the effects of surge in electrical
power. (not the same as a UPS)
System file - a file in the System folder that allows your Mac to start and run.
System folder - an all-important folder that contains at least the System file and the Finder.
32 bit addressing - a feature that allows the Mac to recognize and use more than 8MB of memory.
title bar - the horizontal bar at the top of a window which has the name of the file or folder it
represents.
upload - to send a file from one computer to another through a network.
Uninterruptible Power Source (UPS)- a constantly charging battery pack which powers the computer. A
UPS should have enough charge to power your computer for several minutes in the event of a total
power failure, giving you time to save your work and safely shut down.
UPS - acronym for Uninterruptible Power Source.
vaporware - "software" advertised, and sometimes sold, that does not yet exist in a releasable for.
virtual memory - using part of your hard drive as though it were "RAM".
WORM - acronym for Write Once-Read Many; an optical disk that can only be written to once (like a CDROM).
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 28
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
zoom box - a small square in the upper right corner of a window which, when clicked, will expand the
window to fill the whole screen.
COMPUTER TERMINOLOGY 2
Application: Application is another term for software program; basically a program you use on a
computer, like Word, TurboTax, Outlook, etc.
Bandwidth: A measurement of a data line's transmission speed, or the amount of data a network can
transfer from one computer to another in a given amount of time.
BIOS: Basic Input/Output System. This term is used to refer to ROM BIOS chip inside the computer. This
chip starts and manages the computer bootup process.
Bootstrap Loader: A small program that manages a computer boot up process until the operating
system can take over. The bootstrap loader’s only job is to load other software, usually in a sort of
sequential chain up to the point when the operating system can get loaded into memory and start. The
name "bootstrap loader" comes from the idea that the computer is pulling itself up by its "bootstraps".
Broadband: A bandwidth term that means a data line that will allow large amounts of data to be
transferred very quickly. Basically a broadband line will be much, much faster than an old dial-up line.
Burn: To “burn” a CD or DVD means to write data files to it using a special piece of hardware.
Bus: A collection of (usually copper) wires through which data is transmitted from one part of a
computer to another. You can think of a bus as a "highway" on which data travels within a computer.
Cable vs DSL: Cable and DSL are types of broadband data lines. Cable internet access uses the same lines
that bring cable television cable to your house, and DSL (Which stands for Digital Subscriber Line) is a
type of high speed data compression which runs over plain old telephone service (POTS) lines.
CMOS: A type of computer chip which is able to operate with a very small amount of electricity from a
battery. The term also refers to the contents of a CMOS chip within the computer, which holds
information about the computer boot devices, the date and time and its peripherals even while the
system is turned off.
Computer Resource: This is a general computer terminology for the components that comprise the
processing flow of a computer, including the memory, CPU, etc. You might hear someone say "this
program is a resource hog", meaning it takes up a lot of the computer processing ability, and might
make the computer run slower overall.
CPU: This stands for Central Processing Unit, and it can mean the box that holds the guts of the
computer, or the processor “brain” of the computer. The CPU is the place where all the computer
calculations happen.
CPU Sink: CPUs heat up as they work. A CPU sink is a mechanism to keep the CPU cool while it does its
calculations. It usually consists of a cooling fan and an aluminum heat sink which draws the heat away
the CPU chip.
Defrag: Computers write information to a hard drive by filling in open places on the drive. They don’t
write files all in one big block, which means your Word document might be spread out all over your hard
drive.
To defrag your computer means to basically rearrange the files on your computer’s hard drive so that
file parts are closer together. Once rearranged, the computer will take less time to access the files.
Defragging is usually recommended to speed up a slow computer.
Hard Drive: This is the central storage space for your computer. Almost always, the hard drive is
designated as C: drive. If the drive is partitioned (i.e., split up into different sections), there might also be
a D: drive.
IP address: IP (Internet Protocol) addresses are assigned to each and every computer on a TCP/IP
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 29
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
network. They work like your home address. Mail or any other package could not get to you if you had
no address.
IP addresses basically insure that data on a network goes where it is supposed to go. IP addresses look
something like this: 192.168.1.25.
ISP: Internet Service Provider: This would be the company that provides your internet access.
Malware: a general term for any malicious piece of software, such as a virus, worm, or trojan.
Mother Board: The green board inside of a computer that allows all of the internal computer
components to interact. Some would call it the "heart" of the computer. It routes data to and from all
the other parts, including the CPU chip, the RAM, the power supply, etc.
Network Interface Card (NIC): This is a part of the computer that allows it to talk to other computers
(aka, a network) via a network “protocol” or language like TCP/IP.
Operating system: This is the basic software that a computer runs on. Windows 98, Windows XP,
Windows Vista, Linux, Unix, and Apple’s Mac OS X Leopard are all operating systems.
Peripherals: This is a general term for computer add-ons like printers, mice, keyboards, scanners,
monitor, etc..
POST: This stands for Power On Self Test. When you first turn on a computer, it checks to make sure all
its parts are working; it makes sure a keyboard is attached, that memory loads, and that in general, its
hardware is working and ready to load the operating system. This test is called the POST.
Processor chip (or just processor): This is the brain of the computer. You’ve probably heard the
commercials for the "Intel" chip or the "Xeon" chip. They are talking about the "brain" of the computer,
which does all the calculations and task processing.
RAM: this stands for Random Access Memory and is used generically as “memory”. This is the memory
on a computer that allows you to hold and run a program so that you work with it on the monitor. More
RAM is better.
At the risk of repeating myself, RAM is dependent on electricity, meaning it is cleared or reset when the
computer's power is turned off.
So when your computer loses power or freezes up while you are writing an unsaved document, the
document is lost. Train yourself to remember to press Control + S to save your documents when you are
working on them. Saving them writes them to the hard drive where they will stay when the computer is
turned off.
ROM: Read Only Memory. Usually seen in conjunction with BIOS, as in ROM BIOS. Usually a chip onto
which the information is permanently burned. Also denotes memory that can be accessed and read, but
not written to.
Routine: A series of instructions written to complete a specific but limited computing task.
TCP/IP: Transmission Control Protocol and Internet Protocol. These are the basic data transmission
protocols on which the internet and most commercial networks run.
Uninterruptible Power Source (UPS): A constantly charging battery which will act as a fail safe if the
electricity shuts down while you are using your computer.
In the event of a total power failure, a UPS usually has just enough charge to power your computer for
the time it takes you to save your work and shut down safely.
URL: Universal Resource Locater. The address of any website on the internet. For instance, my website
home page has a URL of http://www.sensible-computer-help.com.
Worm: A worm is a virus that does not infect other programs. It makes copies of itself, and infects
additional computers, usually via network connection. It does not attach itself to other programs, but it
might alter, install, or destroy files and programs. It's also used in computer terminology as a short word
any malware in general.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 30
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
COMPUTER TERMINOLOGY 3
Application Files
Program files environment where you can create and edit the kind of document that application makes.
Click
To select an object by pressing the mouse button when the cursor is pointing to the required menu
option, icon or hypertext link.
Close
To close a window that has been opened for viewing and / or editing.
Computer
A general-purpose machine that processes data according to a set of instructions that are stored
internally either temporarily or permanently.
Central Processor Unit (CPU)
This term has two meanings (just to confound beginners, you understand)
1) Central Processor Unit--the main chip on the computer that makes everything go.
2) The box that holds the guts of the computer.
A faster CPU is always better than a slower one. You can never have too fast of a CPU.
Crash
Your computer or application no longer works correctly and so you "loose" all the work you've done
since the last time you saved.
Creating A File
Storing data as a file with an assigned file name that is unique within the directory it resides in.
Delete
To remove an item of data from a file or to remove a file from the disk.
Desktop
An on-screen representation of a desktop such as used in the Macintosh and Windows operating
systems.
Dialog Boxes
Takes over your screen and allows you to "dialog" with the computer.
Directory (AKA Folder, sub-directory)
Allows you to organize files and other folders.
Disk Space
This is the place where your files live. The greater the disk space the more files you can keep. (See also
Megabytes)
More disk space is always better than less. You can never have much disk space.
Documents
Files you create and edit.
Document Files
Files we care about (memos, letters, pictures, etc.)
Double Click
To press the mouse button twice in rapid succession without moving the mouse between clicks.
Drag
To move an object on screen in which its complete movement is visible from starting location to
destination.
Edit
To make a change to existing data.
File Cabinet
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 31
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Metaphorically, the hard drive (and other kinds of storage media like floppy disks) which store files and
folders.
Folder (AKA Directory, Sub-Directory)
Allows you to organize files and other folders.
Folder Icons
Collections of documents and other folders.
Icons
In a graphical user interface (GUI), a small, pictorial, on screen representation of an object, such as a
document, program, folder or disk drive.
Icon View
Allows you to see icons of folders and files primarily as icons with little information.
Keyboard
This if the primary text input device. It also contains certain standard function keys, such as the Escape
key, tab, and arrow keys, shift and control keys, and sometimes other manufacturer-customized keys.
Kilo (K)
This is a unit of measure = 1,000. So 1,000 bytes is a KiloByte.
List View
Shows the icons but also orders the icons (often by name, but can sort the list in other ways) and shows
more information about them.
Macintosh
The brand name of a family of personal computers (hardware) and an operating system (software) from
Apple, introduced in 1984.
Megabytes (Mb)
Mega = million so Mb is 1,000,000 bytes. It's enough information for the computer to store one
character (e.g. "h"), so 1mb text file = 1,000,000 keystrokes in that file. Just to confound the masses,
although RAM and Disk Space do something completely different we measure both in megabytes. This
leads to confusion.
MegaHertz (Mhz)
This stands for MegaHertz. A hertz is an electronics term. 1 hz = one cycle (or wavelength) per second. 1
megahertz = 1,000,000 cycles per second.
In computer jargon, Mhz measures how *fast* your CPU chip runs. Although it's more important to
know the chip than the speed, if you're comparing the same kind of CPU chip then a higher / faster CPU
speed (measured in MHz) is better than a slower speed.
Menu
Displays a list of commands, some with images next to them.
Modifier Keys
Keys that change the meaning of what you type.
Mouse
Pointing device that allows you to tell the computer what to do.
Operating System (OS)
System software that allows your computer to work.
Pointer (AKA Cursor)
The name of the arrow (or other shape) that tracks across the screen as you move the mouse (or other
pointing device) around.
Random Access Memory (RAM)
This stands for Random Access Memory. You can think of this as the "space" where you computer does
its processing. The more space you have the more processes you can run at the same time. More RAM is
always better than less. You can never have much RAM.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 32
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Recycle Bin
Place where you put files and folders that you may later want to delete or get rid of. Compare Trash.
Resize Box
Allows you to change the size and shape of a window.
Right click
To press the right button on the mouse. (This is Windows specific. On a Mac running System 8 or higher,
you hold down the Control key and then click to get the same effect.)
Save
Tell the computer to create a file on disk that has the information you've put into the document (usually
typing).
Save As
Give the file a name and/or store the file in a certain place.
Scroll bar
Allows you to move around through your document.
Shut down
To quit all applications and turn off the computer.
Software
Instructions that tell the computer what to do.
System files
Allows our computer to work.
Trash
Place where you put files and folders that you want to delete or get rid of.
Volume Icons
Devices that hold files and folders.
Windows
1) The most widely used operating system for personal computers from Microsoft. (Software only. Other
companies manufacture the hardware that runs the Windows Operating System.) Compare Macintosh.
(Windows with a large "W".)
2) The thing you see on screen that contains a directory listing or the contents of a document. (Window
with a small "w".)
Banking Awareness
LIST OF INDIAN BANKS & PRIVATE BANKS AND THEIR HEADS
Central Bank
RBI (Governor) – Raghuram Rajan
RBI (Dy. Governor) – H. R. Khan, Urjit R. Patel, R. Gandhi & S.S. Mundra
Nationalized Banks
Allahabad Bank (Chairman and MD) – Rakesh Sethi
Andhra Bank (MD and CEO) – Suresh N. Patel
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 33
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Bank of Baroda (MD and CEO) – P.S. Jayakumar
Bank of India (MD and CEO) – Melwyn Rego
Bank of Maharashtra (Chairman and MD) – Sushil Muhnot
Bhartiya Mahila Bank (Chairman and MD) –
Canara Bank (MD and CEO) – Rakesh Sharma
Central Bank of India (Chairman and MD) – Rajiv Rishi
Corporation Bank (Chairman and MD) – S.R. Bansal
Dena Bank (Chairman and MD) – Ashwani Kumar
IDBI (MD and CEO) – K.P. Kharat
Indian Bank (Chairman and MD) – M.K. Jain
Indian Overseas Bank (MD and CEO) – R. Koteeswaran
Oriental Bank of Commerce (MD and CEO) – Animesh Chauhan
Punjab National Bank (MD and CEO) – Usha Ananthasubramanian
Punjab and Sind Bank (Chairman and MD) – J.B. Singh
Syndicate Bank (MD and CEO) – Arun Srivastava
UCO Bank (Chairman and MD) – Ravi Kishan Takkar
Union Bank of India (Chairman and MD) – Aurn Tiwari
United Bank of India (MD and CEO) – P. Srinivas
Vijaya Bank (MD and CEO) – Kishore Kumar Sansi
State Bank Group
State Bank of India (Chairman) – Arundhati Bhattacharya
State Bank of Bikaner and Jaipur (MD) – Jyoti Ghosh
State Bank of Hyderabad (MD) – Santanu Mukherjee
State Bank of Mysore (MD) – Sharad Sharma
State Bank of Patiala (MD) – S.A. Ramesh Rangan
State Bank of Travancore (MD) – Jeevan Das Narayan
Private Bank
Axis Bank (MD and CEO) – Shikha Sharma
Catholic Syrian Bank (MD and CEO) – Anand Krishnamurthy
City Union Bank (MD and CEO) – N. Kamakodi
Development Credit Bank (MD and CEO) – Murali M. Natrajan
Dhanalakshmi Bank (MD and CEO) – P.G. Jayakumar
Federal Bank (MD and CEO) – Shyam Shrinivasan
HDFC Bank (MD) – Aditya Puri
ICICI Bank (MD and CEO) – Chanda D. Kochhar
Indusind Bank (MD) – Romesh Sobti
J and K Bank (Chairman and CEO) Mushtaq Ahmad
Karnataka Bank (MD and CEO) – P. Jayarama Bhat
Karur Vyasa Bank (MD and CEO) – K. Venkataraman
Kotak Mahindra Bank (MD) – Uday S. Kotak
Lakshmi Vilas Bank (MD and CEO) –
Nainital Bank (Chairman and CEO) – S.K. Gupta
Ratnakar Bank (MD and CEO) – Vishwavir Ahuja
South Indian Bank (MD and CEO) – V.G. Mathew
Tamil Nad Mercantile Bank (MD and CEO) – K.B. Nagendra Murthy
Yes Bank (MD and CEO) – Rana Kapoor
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 34
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
HEADQUARTERS OF NATIONALIZED BANKS
Allahabad Bank : Kolkata
Bank of India : Mumbai
Bank of Maharashtra : Pune
Canara Bank: Bangalore
Central Bank of India : Mumbai
Corporation Bank: Mangalore
Dena Bank : Mumbai
Indian Bank : Chennai
Indian Overseas Bank : Chennai
Oriental Bank of Commerce : New Delhi
Punjab National Bank : New Delhi
Punjab & Sind Bank : New Delhi
State Bank of India : Mumbai
Syndicate Bank : Manipal
UCO Bank : Kolkata
Union Bank of India : Mumbai
United Bank of India : Kolkata
Vijaya Bank : Bangalore
Andhra Bank : Hyderabad
TAGLINES OF DIFFERENT BANKS
1. Allahabad Bank A tradition of trust
2. Andhra bank For all your needs
3. Bank of Baroda India‘s international bank
4. Bank of India Relationships beyond banking
5. Bank of Maharashtra One family one bank
6. Canara Bank Together We Can
7. Central bank Central to you since 1911
8. Dena Bank Trusted Family Bank
9. Indian Bank Taking banking technology to the common man
10. Oriental bank of Commerce Where every individual is committed
11. Punjab National Bank The name you can bank on
12. State bank of India With you all the way
13. Syndicate bank Your faithful & friendly financial partner
14. Vijaya Bank A friend you can bank on
BANKS IN INDIA AS ON April 2015
1) There are a total of 27 PSBs in India [21 NationaliZed banks + 6 State bank group (SBI + 5 associates)]
2) At present there are 22 Private Banks functioning in India
3) At present there are 56 RRBs (Regional Rural Banks ) functioning in India.
4) At present there are 41 Foreign Banks functioning in India
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 35
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
SCHEMES/ POLICY LAUNCHED BY GOVT. OF INDIA
Pradhan Mantri Krishi Sinchayee Yojana (PMKSY) - Agriculture Irrigation Scheme.
Key points:
Scheme aims at providing irrigation facilities to every village in the country by converging ongoing
irrigation schemes implemented by various ministries.
Budgetary allocation: 1,000 crore rupees for fiscal year 2015-16.
Funding Pattern: Centre- States will be 75: 25 per cent. In case of north-eastern region and hilly states it
will be 90:10.
Sukanya Samriddhi Yojana: It is a small deposit scheme for the girl child.
Key points of the scheme –
In one family, a maximum of two accounts can be opened for two girl children. The account can be
transferred anywhere in India from one Post office/Bank to another.
Age Limit: The upper age limit of the girl child for opening this account is 10 years. The govt. has given a
relaxation of one year in the upper age limit for those opening accounts till December 1, 2015.
Documents required - 1. Birth Certificate of the girl child. 2. Address proof. 3. Identity proof.
Minimum & Maximum deposit: The minimum deposit under the scheme is Rs. 1000/-. The maximum
deposit is Rs. 1.5 lakhs. There is no limit on the number of investments one can make in an account
either in a month or in a year.
Interest rate: The government will announce the interest rate of the scheme every year. However, the
government of India has increased the rate of interest from 9.1% (2014-15) to 9.2% (2015-16) for this
financial year.
Maturity period: The maturity period of the scheme is 21 years from the date of account opening,
though deposits need to be made only for the first 14 years.
The minimum lock-in in period under the Sukanya Samriddhi Yojana is 11 years.
Pradhan Mantri Kaushal Vikas Yojana (PMKVY):
The scheme aims to impart skill training to youth with focus on first time entrants to the labour market
and class 10 and class 12 drop outs.
The scheme will be implemented by the Union Ministry of Skill Development and Entrepreneurship
through the National Skill Development Corporation (NSDC). I
It will cover 24 lakh persons and skill training would be based on the National Skill Qualification
Framework (NSQF) and industry led standards
Bhagyashree scheme:
It is girl child scheme was launched in Maharashtra. Bollywood actress Bhagyashree is the brand
ambassador of the scheme.
Key points of the scheme:
The state government will deposit an amount of 21200 rupees in bank for a girl child born in a Below
the Poverty Line (BPL) family.
The scheme aims at providing one 1 lakh rupees on maturity after the girl completes 18 years of age.
The scheme would be linked to the Beti Bachao Beti Padhao scheme of Union Government.
Rashtriya Avishkar Abhiyan (RAA):
Former President of India Dr. APJ Abdul Kalam launched the Rashtriya Avishkar Abhiyan (RAA) in New
Delhi. The abhiyan aims to inculcate a spirit of inquiry, creativity and love for Science and Mathematics
in school children. Rashtriya Avishkar Abhiyan is a concept developed by the Ministry of Human
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 36
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Resource Development. RAA is an effort to take forward the Prime Minister Narednra Modi’s vision of
Digital India, ‘Make in India’ and ‘Teach in India’.
About Pradhan Mantri Jeevan Jyoti Bima Yojana:
It is a low premium insurance scheme which will link with the Pradhan Mantri Jhan Dhan Yojna. Key
points of the scheme:
Eligibility: Minimum 18 years and maximum 50 years and have bank account are eligible for the
scheme. If the account is opened before attaining the age of 50 years, the life cover would remain intact
up to the age of 55 years, if premium is paid regularly.
Premium payable for this scheme is Rs.330 per year i.e. less than Rs.1 per day.
Risk coverage of Rs.2 Lakh in case of death for any reason.
The premium paid will be tax-free under section 80C and also the proceeds amount will get taxexemption u/s 10(10D).
About Atal Pension Yojana (APY):
It is a scheme mainly for workers in unorganised sector. The scheme will be administered by the Pension
Fund Regulatory and Development Authority (PFRDA) and replace the previous government's
Swavalamban Yojana NPS Lite.
Key points of the scheme:
The subscribers who will joined the scheme would receive the fixed pension of Rs. 1000 per month, Rs.
2000 per month, Rs. 3000 per month, Rs. 4000 per month, Rs. 5000 per month, at the age of 60 years,
depending on their contributions.
Age limit: minimum 18 years and maximum age is 40 years.
A subscriber can contribute for minimum period of 20 years or more and pension payment will start at
the age of 60 years.
The government of India has decided to co-contribute 50% of the subscriber's contribution or Rs. 1000
per annum, whichever is lower, to each eligible subscriber account, for a period of 5 years, i.e., from
2015-16 to 2019-20, who join the NPS before 31st December, 2015 and who are not income tax payers.
Pradhan Mantri Suraksha Bima Yojana:
It is an insurance scheme which covers death or disablement of the policyholder caused due to accident
or accidental injuries.
Key points of the scheme:
Age limit: Minimum 18 yrs and maximum 70 years.
The scheme will be a one year cover, renewable from year to year and would be administered through
the Public Sector General Insurance Companies in collaboration with Banks.
Risk coverage: The Pradhan Mantri Suraksha Bima Yojana will offer an accidental death and full
disability cover of Rs. 2 Lakh and for partial disability cover of Rs. 1 Lakh.
Premium: Rs.12 per annum. The premium will be directly auto-debited by the bank from the
subscribers' account.
IMPORTANT COMMITTEES
1. Deepak Mohanty committee – to frame action plan on financial inclusion.
2. A P Shah committee – A high level committee on the controversial issue of payment of Minimum
Alternate Tax (MAT) by foreign institutional investors.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 37
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
3. Bhupendra Yadav committee – to head panel on the Goods and Services Tax, GST bill
4. SS Ahluwalia committee - on the Right to Fair Compensation and Transparency in Land Acquisition
Rehabilitation and Resettlement (LARR) (Amendment) Bill, 2015.
5. Vijay Kelkar committee: on Revisiting and Revitalizing the Public Private Partnership (PPP) Model of
Infrastructure Development.
6. B N Navalawala committee: to head task force on inter-linking of rivers.
7. Ajay Shankar committee: to suggest simplified compliance for establishing new industries.
8. AK Bhargava committee: to look into the issues of "Net neutrality".
9. Dhirendra Swarup committee – to begin the preparatory work for Financial Redress Agency (FRA) that
was recommended by the Financial Sector Legislative Reforms Commission (FSLRC).
PRIMARY AND SECONDARY FUNCTIONS OF COMMERCIAL BANKS
A commercial bank is a type of bank that provides services such as accepting deposits, making business
loans, and offering basic investment products. On day to day functioning it discharge many functions
broadly classified as Primary and Secondary Functions mentioned below.
I. Primary Functions
1) Accepting Deposits
2) Advancing Loans
II. Secondary Functions
1) Overdraft Facility
2) Discounting Bills of Exchange
3) Agency Functions
4) General Utility Functions
Primary Functions
1. Accepting Deposits:
It is one of the most important function of commercial banks. The commercial banks accept the deposits
at lower rates and provide the loans. They accept deposits in several forms according to requirements of
different sections of the society.
The main kinds of deposits are:
i) Current Account Deposits or Demand Deposits:
These deposits refer to those deposits which are repayable by the banks on demand.
★ Such deposits are generally maintained by businessmen with the intention of making transactions
with such deposits. The business men usually deposit from their excess cash balances and withdraw
when they need.
★ They can be drawn upon by a cheque without any restriction.
★ Banks do not pay any interest on these accounts. Rather, banks impose service charges for running
these accounts.
ii) Fixed Deposits or Time Deposits:
Fixed deposits refer to those deposits, in which the amount is deposited with the bank for a fixed period
of time.
★ Such deposits do not enjoy cheque-able facility.
★ These deposits carry a high rate of interest.
iii) Saving Deposits:
These deposits combine features of both current account deposits and fixed deposits.
★ The depositors are given cheque facility to withdraw money from their account. But, some
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 38
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
restrictions are imposed on number and amount of withdrawals, in order to discourage frequent use of
saving deposits.
★ They carry a rate of interest which is less than interest rate on fixed deposits. It must be noted that
Current Account deposits and saving deposits are chequable deposits, whereas, fixed deposit is a nonchequable deposit.
2. Advancing of Loans:
The deposits received by banks are not allowed to remain idle. So, after keeping certain cash reserves,
the balance is given to needy borrowers and interest is charged from them, which is the main source of
income for these banks.
Different types of loans and advances made by Commercial banks are:
i) Cash Credit: The Cash credit refers to a loan given to the borrower against his current assets like
shares, stocks, bonds, etc. A credit limit is sanctioned and the amount is credited in his account. The
borrower may withdraw any amount within his credit limit and interest is charged on the amount
actually withdrawn.
ii) Demand Loans: Demand loans refer to those loans which can be recalled on demand by the bank at
any time. The entire sum of demand loan is credited to the account and interest is payable on the entire
sum.
iii) Short-term Loans: They are given as personal loans against some collateral security. The money is
credited to the account of borrower and the borrower can withdraw money from his account and
interest is payable on the entire sum of loan granted.
Secondary Functions
1. Overdraft Facility:
It refers to a facility in which a customer is allowed to overdraw his current account up to an agreed
limit. This facility is generally given to respectable and reliable customers for a short period. Customers
have to pay interest to the bank on the amount overdrawn by them.
2. Discounting Bills of Exchange:
It refers to a facility in which holder of a bill of exchange can get the bill discounted with bank before
the maturity. After deducting the commission, bank pays the balance to the holder. On maturity, bank
gets its payment from the party which had accepted the bill.
3. Agency Functions:
Commercial banks also perform certain agency functions for their customers. For these services, banks
charge some commission from their clients.
Some of the agency functions are:
i) Transfer of Funds:
Banks provide the facility of economical and easy remittance of funds from place-to-place with the help
of instruments like demand drafts, mail transfers, etc.
ii) Collection and Payment of Various Bill Payments:
Commercial banks collect cheques, bills, interest, dividends, subscriptions, rents and other periodical
receipts on behalf of their customers and also make payments of taxes, insurance premium, etc. on
standing instructions of their clients.
iii) Purchase and Sale of Foreign Exchange:
Some commercial banks are authorized by the central bank to deal in foreign exchange. They buy and
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 39
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
sell foreign exchange on behalf of their customers and help in promoting international trade.
iv) Purchase and Sale of Securities:
Commercial banks buy and sell stocks and shares of private companies as well as government securities
on behalf of their customers.
v) Income Tax Consultancy:
They also give advice to their customers on matters relating to income tax and even prepare their
income
tax returns.
vi) Trustee and Executor:
Commercial banks preserve the wills of their customers as trustees and execute them after their death
as executors.
4. General Utility Functions:
Commercial banks render some general utility services like:
i) Locker Facility:
Commercial banks provide facility of safety vaults or lockers to keep valuable articles of customers in
safe custody.
ii) Traveller's Cheques:
Commercial banks issue traveler's cheques to their customers to avoid risk of taking cash during their
journey.
iii) Letter of Credit:
Commercial banks issue letters of credit to their customers to certify their creditworthiness.
iv) Underwriting Securities:
Commercial banks also undertake the task of underwriting securities. As public has full faith in the
creditworthiness of banks, public do not hesitate in buying the securities underwritten by banks.
v) Collection of Statistics:
Banks collect and publish statistics relating to trade, commerce and industry. Hence, they advice
customers on financial matters. Commercial banks receive deposits from the public and use these
deposits to give loans. However, loans offered are many times more than the deposits received by
banks. This function of banks is known as 'Money Creation'.
BANKING RELATED DEVELOPMENTS DURING THE YEAR 2014








Kerala became first state with bank accounts for all families.
Federal Bank bagged CNBC TV18 Financial Inclusion Award.
ICICI Bank customer can recharge Delhi Metro cards with SMS.
Yes bank has recently launched 'Saaf suthra Bharat' campaign in Sri Nagar. The bank successfully
launched this campaign contributing to the Swachch bharat abhiyan.
Axis Bank launches ''smart selfservice terminal'' that enables the customers to deposit as well as
withdraw cash from the same machine.
Private sector Indus Ind Bank has launched video-branch, claiming to be a first-of-its-kind
service; enabling customers interact with the staff of the bank through video conference facility.
ICICI bank has launched a new mobile named iMobile app for its windows phone customers.
The Reserve Bank of India has cancelled the certificate of registration of NBFCs (Siber Financial
Services Private Limited, Sri Vishnu Finance & Investment Private Limited, Margdarsi Investment
and Leasing Company Private Limited.) for carrying on the business of non-banking financial
institution.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 40
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM














CSR was made 2% compulsory through Companies Act 2013. RBI further simplifies KYC Norms
regarding bank accounts as "One Documentary Proof of
Address is enough to open bank account".
Domestic banks will need US $200 billion additional capital over the next five years to meet
Basel - III norms for capital adequacy and the demand for funds as growth picks up, Fitch
Ratings.
State bank of India has tied up with Bangalore-based mobile payments service provider Ezetap
Mobile Solutions Pvt. Ltd. in association with Ezetap the bank has planned to roll out "ATM cum
POS terminals".
Kotak Mahindra bank has introduced ''Kaypay payment system''. This allows the face book users
to send money to each other.
Insurance Regulatory and Development Authority (IRDA) aligned it's corporate governance
and disclosure norms in accordance with the new Companies Act, 2013, through a 12-member
committee.
Non-Scheduled UCBs are permitted to "Internet Banking (View Only) Facility" for Customers.
Bank of India got approval to open branch in Vietnam.
As per the new guidelines of the Reserve Bank of India (RBI), banks in six metros - New Delhi,
Mumbai, Chennai, Kolkata, Hyderabad and Bangalore - are free to charge other bank customers
beyond 3 ATM transactions per month. Banks have also been allowed to restrict free
transactions to 5 for customers at it's own ATM network.
HDFC became first listed Indian company to have 75% shareholding by FIIs.
S&P (Standard and Poor) downgraded credit rating of Indian Overseas Bank to speculative
grade.
FDI limits allowed - Public Sector Banks: 20%. Private Sector Banks: 74%.
Kotak Mahindra bank to acquire ING Vysya Bank.
RBI allows FIIs to buy equity in Yes Bank.
Exim Bank to set up Rs. 1,500 crore funds to assist ship-building industry. To give a boost to ship
building in the country, the Export-Import Bank of India (Exim Bank) is planning to set PMJDY
scheme, was announced in Modi's first Independence Day speech on 15 August 2014.
INDIAN FINANCIAL SYSTEM
The economic development of a nation is reflected by the progress of the various economic units,
broadly classified into corporate sector, government and household sector. While performing their
activities these units will be placed in a surplus/deficit/balanced budgetary situations.
There are areas or people with surplus funds and there are those with a deficit. A financial system or
financial sector functions as an intermediary and facilitates the flow of funds from the areas of surplus
to the areas of deficit. A Financial System is a composition of various institutions, markets, regulations
and laws, practices, money manager, analysts, transactions and claims and liabilities.
The word "system", in the term "financial system", implies a set of complex and closely connected or
interlined institutions, agents, practices, markets, transactions, claims, and liabilities in the economy.
The financial system is concerned about money, credit and finance-the three terms are intimately
related yet are somewhat different from each other. Indian financial system consists of financial market,
financial instruments and financial intermediation.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 41
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Financial Markets
A Financial Market can be defined as the market in which financial assets are created or transferred. As
against a real transaction that involves exchange of money for real goods or services, a financial
transaction involves creation or transfer of a financial asset. Financial Assets or Financial Instruments
represents a claim to the payment of a sum of money sometime in the future and /or periodic payment
in the form of interest or dividend.
Money Market:
The money market is a wholesale debt market for lowrisk, highly-liquid, short-term instrument.
Funds are available in this market for periods ranging from a single day up to a year. This market is
dominated mostly by government, banks and financial institutions.
Capital Market:
The capital market is designed to finance the long-term investments. The transactions taking
place in this market will be for periods over a year.
Forex Market:
The Forex market deals with the multicurrency requirements, which are met by the exchange of
currencies. Depending on the exchange rate that is applicable, the transfer of funds takes place in this
market. This is one of the most developed and integrated market across the globe.
Credit Market:
Credit market is a place where banks, FIs and NBFCs purvey short, medium and long-term loans to
corporate and individuals.
Financial Intermediation:
Having designed the instrument, the issuer should then ensure that these financial assets reach the
ultimate investor in order to garner the requisite amount. When the borrower of funds approaches the
financial market to raise funds, mere issue of securities will not suffice. Adequate information of the
issue, issuer and the security should be passed on to take place. There should be a proper channel
within the financial system to ensure such transfer. To serve this purpose, financial intermediaries came
into existence. Financial intermediation in the organized sector is conducted by a wide range of
institutions functioning under the overall surveillance of the Reserve Bank of India. In the initial stages,
the role of the intermediary was mostly related to ensure transfer of funds from the lender to the
borrower. This service was offered by banks, FIs, brokers, and dealers. However, as the financial system
widened along with the developments taking place in the financial markets, the scope of its operations
also widened. Some of the important intermediaries operating ink the financial markets include;
investment bankers, underwriters, stock exchanges, registrars, depositories, custodians, portfolio
managers, mutual funds, financial advertisers financial consultants, primary dealers, satellite dealers,
self regulatory organizations, etc. Though the markets are different, there may be a few intermediaries
offering their services in move than one market e.g. underwriter. However, the services offered by them
vary from one market to another.
EVOLUTION OF BANKING
Banking, in the present form might have evolved during the 17th century. Kautilya, in his ‘Arthashastra’
written in about 300 B.C., has also mentioned about the existence of powerful guilds of merchant
bankers who received deposits, and advanced loans and issued hundis (letters of transfer). In the
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 42
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
modern times, an experienced Scottish goldsmith, William Paterson, is credited with the idea of setting
up a national bank in Britain in 1688, which gave birth to the Bank of England. The modern day banking,
in its simplest form, is meant to facilitate financial intermediation between the savers and the
borrowers. It also seeks to act as a safe place to store money and earn some return in the process, as
also a place to seek simple financial solutions to individual problems.
The advent of technology in modern times has heralded three distinct phases in banking: a)
Computerization of back office processes during the 1980s,
b) Facilitating higher customer convenience during the 1990s and
c) Enabling lifestyle/life stage banking during the 2000s
Thus, over time, the banks have witnessed significant changes in their outlook and have emerged as
financial supermarkets offering a range of complex financial products and services on a round the clock
basis, duly customized to the needs of their customers through multiple delivery channels
RBI
Reserve Bank of India was established on April 1, 1935 in accordance with the provisions of the RBI Act,
1934 (the Act). This marked the culmination of the prolonged efforts, to set up a central bank in the
country. The principle of aligning the regulatory structure to the specific needs of the country and for
that matter to even go beyond the prevalent wisdom and ethos were distinctly visible at that time itself.
Despite the Reserve Bank being constituted as a central bank, it was thought fit to prescribe in the
statute itself a development role for the Reserve Bank. Accordingly, the Act has a provision that the
Reserve Bank will develop and maintain expertise in agricultural development (later expanded as rural
development) and related subjects and thus began the role of the central bank being sensitive to the
need of the economy. As such, after independence in the year 1947, the Indian banking industry was
brought under the regulatory ambit of the Reserve Bank of India.
1)Banking Companies Act was passed in the year 1949.
2)Later, in March 1966, certain co-operative societies were brought within its fold and this act was
renamed as the Banking Regulation Act, 1949 (BR Act). This enactment brought significant powers to the
Reserve Bank of India (RBI) over the banks.
Private banks were then on the scene, though the money lenders were the major source of funding. A
usurious and exploitative system prevailed Promotional and Developmental role of the Central Bank in
India
The basic function of the Reserve Bank, according to the preamble of the Reserve Bank of India Act, is to
regulate the issue of Bank notes and the keeping of the reserves with a view to maintaining monetary
stability in India and generally to operate the currency and credit system of the country to its advantage.
This function imposes on the Reserve Bank the responsibility for: i. Operating the monetary policy for
maintaining price stability and ensuring adequate financial resources for developmental purposes;
ii. Promotion of the efficient financial system; and iii. Meeting the currency requirement of the public.
Establishment of Specialized Institutions:1. Reserve Bank established a separate institution, viz., the National Bank for Agricul- ture and Rural
Development (NABARD) for provision of medium-term and long-term refinance for agriculture and rural
development as also for providing consultative service to the Government and banks and generally
coordinate its activities in area of agricultural credit with those of the agencies engaged in purveying
such credit.
RBI promoted of Industrial Finance Corpo-ration of India (IFCI), State Financial Corporations, Industrial
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 43
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Development Bank of India (IDBI) and Unit Trust of India (UTI). Reserve Bank promoted the Deposit
Insurance and Credit Guarantee Corporation of India Limited (DICGC) for providing insurance and
guarantees against the risk of default in payment by the banks or to the banks. Further, the Reserve
Bank also helped establish specialized institutions for specific type of financing, like
i. National Housing Bank (NHB) and
ii. Export Import Bank of India (EXIM Bank).
iii. Discount Finance House of India (DFHI) and the Securities Trading Corporation of India (STCI).
iv. Clearing Corporation of India Ltd (CCIL)
v. National Payment Corporation of India Ltd (NPCI).
Expansion of the scope and reach of the Indian banking system:
Even though, up to the late 1960’s the Indian banking system made reasonable progress, there were still
many rural and semi-urban areas which were not served by banks. The large industries and the big and
established business houses tended to enjoy a major portion of the credit facilities, to the detriment of
the priority sectors such as agriculture, small-scale industries and exports. Thus, with the primary
objective of achieving efficient distribution of resources in conformity with the requirements of the
economy and in order to meet the needs of the priority sectors, the Government decided to introduce
social control over banks by amending the banking laws. Accordingly, on July 19, 1969 and April 15, 1980
respectively, 14 and six major Indian scheduled commercial banks in the private sector were
nationalised. Social control marked a transitory stage in the evolution of banking policy and in this
process; a system of credit planning and the Lead Bank Scheme were operationalized by the Reserve
Bank to make the banking system function as an instrument of economic and social development. In
conformity with these desired objectives of social control, the banking policy was reoriented in the
seventies for securing a progressive reduction in poverty, concentration of economic power and regional
disparities in the banking facilities. The promotional aspects of the banking policy came into greater
prominence. In this direction, the branch expansion policy was designed, among other things, as a tool
for reducing inter-regional disparities in banking development, deployment of credit and urban-rural
pattern of credit distribution. Administered interest rate policy emerged as an important instrument for
directing the flow of funds and for augmenting the pace of deposit mobilisation. The Reserve Bank
opted for selective extension of credit under the Selective Credit Control scheme to those sectors that
were accorded priority in conformity with the national objectives. The objective was to correct undue
price fluctuations in respect of certain commodities such as food grains and agricultural raw materials
arising from speculative activities. The main instruments of Selective Credit Control were a) minimum
margins for lending and b) ceilings on the level of credit against stocks of selected commodities to
control the quantum of credit given.
The period since 1985 was a process of consolidation which involved, i) comprehensive action plans by
banks covering organization, structure, training, house-keeping, customer service, credit management
and recovery of bank dues, productivity and profitability,
ii) phased introduction of modern technology in banking operations with emphasis on financial viability
by easing some of the policy related constraints on profitability,
iii) strengthening capital base of banks and iv) allowing them flexibility in several areas.
By the end of eighties, the Indian economy had developed an extensive financial superstructure
consisting of a vast network of institutions, deploying varied instruments and facilitating the
mobilisation and channeling of funds for working capital and production credit purposes as well and for
long term investment. The Reserve Bank thus helped promote and nurture a functionally varied and
spatially diversified financial system.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 44
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
NABARD
National Bank for Agriculture and Rural Development (NABARD) was established on 12th July, 1982
under the National Bank for Agriculture and Rural Development Act, 1981 by merging the Agriculture
Credit Department and Rural Planning and Credit cell of RBI. It took over the entire functions of the
Agriculture Refinance and Develop-ment Corporation (ARDC). NABARD was established with the
recommendations of CRAFICARD Committee. Its head office is situated at Mumbai. It planned to open
offices throughout India. In the beginning the paid up capital of the NABARD was Rs.100 Crores
contributed by the Govern-ment of India and RBI jointly. Its authorized capital raised to Rs.1000 Cores.
The other funds of NABARD were
a. National Rural Credit (Long Term Operations) Fund
b. National Rural Credit (Establishment ) Fund
c. Funds raised by issue of bonds and deben tures guaranteed by the Central Government
d. Borrowing from RBI, Central Government or any other organisations approved by the Central
Government
e. Funds from external sources through the Government
What are the functions of NABARD?
Ans: 1. Credit functions
2. Development functions
3. Regulatory functions
Credit functions:
NABARD is an apex development bank for agriculture and rural development. It has been established for
providing credit for the promotion of agriculture small scale industries, cottage and village industries,
handicrafts and the rural crafts and other allied economic activities in rural areas with a view to promote
integrated rural development and securing prosperity in rural areas. It also provides refinance facilities
to commercial banks, RRBs, Co-operative banks, Land Development Banks and other financial
institutions. It also provides refinance for loans granted under IRDP scheme. Basis of refinance by the
NABARD is the percentage of recovery during previous year.
Development functions: NABARD also undertakes the functions of co-ordination of various institutions
in this area, acting as an agent to the Government and RBI, providing training and research facilities and
development of expertise in the field.
Regulatory functions: The Banking Regu- lation Act, 1949 authorises NABARD to inspect RRBs and Cooperative banks (other than primary co-operative banks). These banks file returns to NABARD and also
obtain recommendations from NABARD in case of opening of new branches.
NABARD is managed by a Board of Direct- ors consisting of
i. Chairman
ii. Directors nominated by RBI, Government
of India, State Governments
iii. Experts from Commercial and
Cooperative Banks
iv. Experts in Rural economics
QUESTIONNAIRE ON UNION BUDGET 2015-16
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 45
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
1. In the Union Budget, rate of Service Tax was hiked from 12% to ____ - 14%
2. In the Union Budget 2015-16, Fiscal deficit seen at how much per cent of GDP in 2015/16? - 3.9 %
3. How much amount has been allocated to the Rural Infrastructure Development Bank in the Union
Budget 2015-16? - Rs. 25,000 crore
4. According to the Union Budget, two new IIM will be opened in which of the following states? -Jammu
& Kashmir and Andhra Pradesh
5. According to the Union Budget 2015-16, Non-Banking Financial Companies (NBFCs) registered with
Reserve Bank of India (RBI) above _______ will be now considered as financial institutions? - Rs. 5,000
crore
6. How much amount has been allocated for Rural Employment Guarantee Scheme in the Union Budget
2015-16? - 346.99 billion rupees
7. How much amount has been allocated to Defence sector in the Union Budget 2015-16? - Rs. 2,46,726
crore
8. According to the Union Budget, how much per cent of Revenue Deficit to be seen in 2015-16? - 2.8%
9. According to the Union Budget 2015-16, how much per cent, rate of corporate tax will be reduced
over next four years? - 25%
10. According to the Union Budget 2015-16, now details of PAN has to mentioned compulsory for
transactions for more than _____.- Rs. 1 lakh
11. In the Union Budget 2015-16, increase in the limit of health insurance premium from current Rs
15,000 to ____.Rs. 25,000
12. How much amount has been allocated for micro-irrigation watershed projects in the Union Budget
2015-16? - Rs. 5,300 Crore
13. How much amount has been allocated to Infrastructure sector in the Union Budget 2015-16? - Rs.
70,000 crore
14. According to the Union Budget 2015-16, Visa on arrival for how many countries? – 150
15. According to the Union Budget, Centre of film production, animation and gaming to come up in
_____. AP
16. On which date Union Budget 2015-16 was presented in Parliament? - 28 February 2015
17. Name the Union Finance Minister who presented the Union Budget 2015-16 in Parliament? - Arun
Jaitley
18. Personal Income Tax limit was not changed in Union Budget 2015-16. What is the present Personal IT exemption limit? - Rs 2.5 lakh
19. Health Insurance Premium deduction hiked from Rs. 15,000 to?- Rs. 25,000 (for senior citizens to Rs.
30,000)
20. Transport allowance exemption hiked to Rs. 1,600, from ____ per month? - Rs.800
21. PAN card is must for all purchase above ______ rupees as proposed in Budget 2015-16? - Rs. 1 lakh
22. An additional _____% surcharge on people earning over Rs. 1 cr was put forth in the budget 201516? - 2%
23. What change was made in the Wealth tax? - Wealth tax abolished
24. DTC was dropped in the Budget 2015-16. Expand DTC? - Direct Taxes Code
25. Corporate tax to be reduced from 30% to ___ over next four years? - 25%
26. Mudra banks to be established with capital of Rs.___ crore?- 20000
27. Rs. ____ deduction for contribution to New Pension Scheme?- Rs. 50,000
28. GAAR implementation deferred by 2 years to? - April 2017
29. Service Tax rate hiked to ___% from 12.36%? - 14%
30. Tax free bonds were proposed in budget for? - Roads, railways, irrigation project
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 46
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
RuPAY CARD
❖ RuPay is a combination of two words – Rupee and Payment. RuPay Card is an Indian version
of credit/debit card. It is very similar to international cards such as Visa/Master.
❖ RuPay is the Indian domestic card payment network set up by National Payments Corporation of
India (NPCI) at the behest of banks in India with the approval of Reserve Bank of India.
❖ It is created to fulfill the Reserve Bank of India's desire to have a domestic, open loop, and
multilateral system of payments in India.
❖ RuPay facilitates electronic payment at all Indian banks and financial institutions, and competes
with Master Card and Visa in India.
❖ NPCI maintains ties with Discover Financial to enable the card scheme to gain international
acceptance.
❖ National Payments Corporation of India (NPCI) has a plan to provide a full range of card payment
services including the RuPay ATM, RuPay Micro ATM, Debit, Prepaid and Credit
Cards which will be accepted in India and abroad, across various channels like POS, Internet, IVR and
mobile etc.
❖ The initial focus of NPCI would be to approach those banks who have not been issuing any payment
card at all more specifically – Regional Rural Banks (RRBs) and urban co-operative banks.
❖ RuPay cards are accepted at all automated teller machines (ATMs) across India under National
Financial Switch, and under the NPCI's agreement with DFS. RuPay cards are accepted on the
international Discover network.
❖ According to the data published by National Payments Corporation of India, there are around
145270 ATMs and more than 875000 Point of Sale (PoS) terminals in India under the RuPay platform.
❖ In addition to the ATMs and PoS terminals, RuPay cards are accepted online on 10,000 e-commerce
websites with the same PIN which they use for ATM transactions.
❖ RuPay cards are accepted at all PoS terminals in India. To enable this, RuPay has certified 29
major banks in India to accept the RuPay card at their respective PoS terminals located at different
merchant locations.
❖ NPCI has rolled out its chip card for high security transactions using EMV (Europay, MasterCard and Visa) chip technology, which is a global standard for debit and credit cards. RuPay chip cards
have an embedded microprocessor circuit containing information about the card holder and because
transactions are PIN-based rather than signature- based.
❖ RuPay also provides a unified "Kisan Card", issued by banks across the country under Kisan Credit
Card, enabling farmers to transact business on ATMs and PoS terminals.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 47
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Terminology : FINANCIAL TERMS
1) Type of assets
The assets portfolio of the banks is required to be classified as
(1) standard assets(2) sub-standard assets(3) doubtful assets and(4) loss assets.Standard asset is one
that does not disclose any problems and which does not carry more than normal risk attached to the
business .An asset which has been classified as NPA for a period not exceeding 12 months is considered
as sub-standard asset.Doubtful asset is one which has remained NPA for a period exceeding 12
months.An asset which is considered uncollectible and loss has been identified by the bank or internal
or external auditors or the RBI inspection and the loss has not been written off is regarded as loss asset.
2) Core Banking Solutions (CBS)
Core Banking Solutions is a buzz word in Indian banking at present, where branches of the bank are
connected to a central host and the customers of connected branches can do banking at any breach
with core banking facility.
3) Prime Lending Rate
The minimum short-term interest rate charged by commercial banks to their most creditworthy clients.
It is a reference interest rate used by banks for its lending purposes.
4) Parties of a Cheque:
There are three parties to the cheque
1-Drawer or Maker
2-The bank (Drawee) - on whom the cheque is drawn (i.e. the bank with whom the account is
maintained by the drawer)
3- Payee – Payee is the person whose name is mentioned on the cheque to whom or to whose order the
money is directed to be paid.
5) Special Drawing Rights (SDRs)
It is a reserve asset (known as ‘Paper Gold’) created within the framework of the International Monetary
Fund in an attempt to increase international liquidity, and now forming a part of countries official forex
reserves along with gold, reserve positions in the IMF and convertible foreign currencies.
6) Negotiated Dealing System
The Negotiated Dealing System (NDS) for electronic dealing and reporting of transactions in government
securities was introduced in February 2002. It facilitates the members to submit electronically, bids or
applications for primary issuance of Government Securities when auctions are conducted. NDS also
provides an interface to the Securities Settlement System (SSS) of the Public Debt Office, RBI, Mumbai
thereby facilitating settlement of transactions in Government Securities (both outright and repos)
conducted in the secondary market.
7) NDS OM (Order Match)
In August, 2005, RBI introduced an anonymous screen based order matching module on NDS, called
NDS-OM. This is an order driven electronic system, where the participants can trade anonymously by
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 48
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
placing their orders on the system or accepting the orders already placed by other participants. NDS-OM
is operated by the Clearing Corporation of India Ltd. (CCIL) on behalf of the RBI.
8) What is Asset Management Companies?
A company that invests its clients' pooled fund into securities that match its declared financial
objectives. Asset management companies provide investors with more diversification and investing
options than they would have by themselves. Mutual funds, hedge funds and pension plans are all run
by asset management companies. These companies earn income by charging service fees to their
clients.
9) "Soiled Note:" means a note which, has become dirty due to usage and also includes a two piece note
pasted together wherein both the pieces presented belong to the same note, and form the entire note.
(ii) Mutilated banknote is a banknote, of which a portion is missing or which is composed of more than
two pieces.
10) Imperfect banknote means any banknote, which is wholly or partially, obliterated, shrunk, washed,
altered or indecipherable but does not include a mutilated banknote.
Terminology : BANKING TERMS 1
Banking Book
The banking book comprises assets and liabilities, which are contracted basically on account of
relationship or for steady income and statutory obligations and are generally held till maturity.
These securities are accounted for in a different way than those in the trading book, which are traded on
the market and valued by the performance of the market.
In other words, an accounting book that includes all securities that are not actively traded by the
institution, that are meant to be held until they mature.
Bank Rate
The Bank Rate (BR) has been defined in See 49 of RBI Act 1934 as the 'standard rate at which RBI is
prepared to buy or rediscount bills of exchange or other commercial papers eligible for purchase under
this act'. The RBI uses its lending power to banks (a) to influence their credit allocation and (b) to
develop a genuine bill market in India.
Also, it is called an official interest rate at which the central bank rediscounts the approved bills held by
a commercial bank. If the central bank wishes to control credit and inflation, it will increase the bank
rate.
CBS
CBS stands for Core Banking Solutions.
Core or centralized banking solution is a heart of banking system
This is a process by which a bank has interconnect their maximum branches through wide area network
and only this system provide a facility of any branch or any time banking.
ICOR
ICOR stands for Incremental Capital Output Ratio.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 49
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
ICOR is the Ratio of investment to growth which equals to one, divided by the marginal product of
Capital. The higher the ICOR indicates lower the productivity of capital and lower the ICOR reflects high
productivity of Capital. ICOR is the topic or instrument by which the Economic growth rate of company
decided.
ICOR is calculated as:
ICOR = Annual Investment/Annual Increase in GDP
Global Depository Receipt (GDR)
Global Depository Receipt is a bank certificate issued in more than one country for shares in a foreign
company. These shares are held by a foreign branch of an International bank. These shares are trades as
domestic shares but are offered for sale globally through the various bank branches. A GDR is a very
similar to an American Depository Receipt.
Automatic Stabilizer
Automatic Stabilizer is program that enhances and diminishes automatically for equalizing current
economic trends without assistance of government. The best example for automatic stabilizer is
unemployment insurance as it automatically replaces the lost income for people who have lost their
jobs.
Also, Automatic Stabilizers are features of the tax and transfer systems that tend by their design to
offset fluctuations in economic activity without direct intervention by policymakers.
Selective Credit Control
Selective Credit Control (SCC) refers to the directives issued by RBI u/s 21 of Banking Regulation Act
1949 to regulate flow of bank credit against security of sensitive/selected commodities. With a view to
prevent speculative holding of essential commodities with the help of bank credit, RBI issues from time
to time, directive covering the margin requirements and the level and quantum of accommodation that
could be granted against the SCC items.
Selective controls are designed to check the conduct of lenders only, they also influence the attitude of
the borrowers, by prescribing the terms on which certain kinds of loans may be made.
Terminology : BANKING TERMS 2
Account Agreement: The contract governing your open-end credit account, it provides information on
changes that may occur to the account.
Account History: The payment history of an account over a specific period of time, including the number
of times the account was past due or over limit.
Account Holder: Any and all persons designated and authorized to transact business on behalf of an
account. Each account holder's signature needs to be on file with the bank. The signature authorizes
that person to conduct business on behalf of the account.
Acquiring Bank: In a merger, the bank that absorbs the bank acquired.
Accrued interest: Interest due from issue date or from the last coupon payment date to the settlement
date. Accrued interest on bonds must be added to their purchase price.
Adjustable-Rate Mortgages (ARMS): Also known as variable-rate mortgages. The initial interest rate is
usually below that of conventional fixed-rate loans. The interest rate may change over the life of the
loan as market conditions change. There is typically a maximum (or ceiling) and a minimum (or floor)
defined in the loan agreement. If interest rates rise, so does the loan payment. If interest rates fall, the
loan payment may as well.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 50
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Arbitrage: Buying a financial instrument in one market in order to sell the same instrument at a higher
price in another market.
Adverse Action: Under the Equal Credit Opportunity Act, a creditor's refusal to grant credit on the terms
requested, termination of an existing account, or an unfavorable change in an existing account.
Adverse Action Notice: The notice required by the Equal Credit Opportunity Act advising a credit
applicant or existing debtor of the denial of their request for credit or advising of a change in terms
considered unfavorable to the account holder.
AER: Annual earnings rate on an investment.
Affidavit: A sworn statement in writing before a proper official, such as a notary public.
Alteration: Any change involving an erasure or rewriting in the date, amount, or payee of a check or
other negotiable instrument.
Amortization: The process of reducing debt through regular installment payments of principal and
interest that will result in the payoff of a loan at its maturity.
Anytime Banking: With introduction of ATMs, Tele-Banking and internet banking, customers can
conduct their business anytime of the day and night. The 'Banking Hours' is not a constraint for
transacting banking business.
Anywhere Banking : Refers to banking not only by ATMs, Tele-Banking and internet banking, but also to
core banking solutions brought in by banks where customer can deposit his money, cheques and also
withdraw money from any branch connected with the system. All major banks in India have brought in
core banking in their operations to make banking truly anywhere banking.
Annual Percentage Rate (APR): The cost of credit on a yearly basis, expressed as a percentage.
Annual Percentage Yield (APY): A percentage rate reflecting the total amount of interest paid on a
deposit account based on the interest rate and the frequency of compounding for a 365-day year.
Annuity : A life insurance product which pays income over the course of a set period. Deferred annuities
allow assets to grow before the income is received and immediate annuities (usually taken from a year
after purchase) allow payments to start from about a year after purchase.
APR: The annual percentage rate of interest, usually on a loan or mortgage, usually displayed in
brackets and representing the true cost of the loan or mortgage as it shows any additional payments
beyond the interest rate.
Application: Under the Equal Credit Opportunity Act (ECOA), an oral or written request for an extension
of credit that is made in accordance with the procedures established by a creditor for the type of credit
requested.
Appraisal: The act of evaluating and setting the value of a specific piece of personal or real property.
Ask Price: The lowest price at which a dealer is willing to sell a given security.
Asset-Backed Securities (ABS): A type of security that is backed by a pool of bank loans, leases, and
other assets. Most ABS are backed by auto loans and credit cards – these issues are very similar to
mortgage-backed securities.
At-the-money: The exercise price of a derivative that is closest to the market price of the underlying
instrument.
ATM: ATMs are Automatic Teller Machines, which do the job of a teller in a bank through Computer
Network. ATMs are located on the branch premises or off branch premises. ATMs are useful to dispense
cash, receive cash, accept cheques, give balances in the accounts and also give mini-statements to the
customers.
Authorization: The issuance of approval, by a credit card issuer, merchant, or other affiliate, to
complete a credit card transaction.
Automated Clearing House (ACH): A computerized facility used by member depository institutions to
electronically combine, sort, and distribute inter-bank credits and debits. ACHs process electronic
transfers of government securities and provided customer services, such as direct deposit of customers'
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 51
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
salaries and government benefit payments (i.e., social security, welfare, and veterans' entitlements),
and preauthorized transfers.
Automated Teller Machine (ATM): A machine, activated by a magnetically encoded card or other
medium that can process a variety of banking transactions. These include accepting deposits and loan
payments, providing withdrawals, and transferring funds between accounts.
Automatic Bill Payment: A checkless system for paying recurring bills with one authorization statement
to a financial institution. For example, the customer would only have to provide one authorization
form/letter/document to pay the cable bill each month. The necessary debits and credits are made
through an Automated Clearing House (ACH).
Availability Date: Bank's policy as to when funds deposited into an account will be available for
withdrawal.
Availability Policy: Bank's policy as to when funds deposited into an account will be available for
withdrawal.
Available Balance: The balance of an account less any hold, uncollected funds, and restrictions against
the account.
Available Credit: The difference between the credit limit assigned to a cardholder account and the
present balance of the account.
Banking: Accepting for the purpose of lending or investment of deposits of money from Public,
Repayable on demand or otherwise and withdraw able by cheques, drafts, order, etc.
Bank Ombudsman: Bank Ombudsman is the authority to look into complaints against Banks in the main
areas of collection of cheque / bills, issue of demand drafts, non-adherence to prescribed hours of
working, failure to honour guarantee / letter of credit commitments, operations in deposit accounts and
also in the areas of loans and advances where banks flout directions / instructions of RBI. This Scheme
was announced in 1995 and is functioning with new guidelines from 2007. This scheme covers all
scheduled banks, the RRBs and co-operative banks.
Bancassurance: Bancassurance refers to the distribution of insurance products and the insurance
policies of insurance companies which may be life policies or non-life policies like home insurance - car
insurance, medi-policies and others, by banks as corporate agents through their branches located in
different parts of the country by charging a fee.
Banker's Lien: Bankers lien is a special right of lien exercised by the bankers, who can retain goods
bailed to them as a security for general balance of account. Bankers can have this right in the absence of
a contract to the contrary.
Basel-II: The Committee on Banking Regulations and Supervisory Practices, popularity known as Basel
Committee, submitted its revised version of norms in June, 2004. Under the revised accord the capital
requirement is to be calculated for credit, market and operational risks. The minimum requirement
continues to be 8% of capital fund (Tier I & II Capital) Tier II shall continue to be not more than 100% of
Tier I Capital.
Brick & Mortar Banking: Brick and Mortar Banking refers to traditional system of banking done only in a
fixed branch premises made of brick and mortar. Now there are banking channels like ATM, Internet
Banking, tele banking etc.
Business of Banking : Accepting deposits, borrowing money, lending money, investing, dealing in bills,
dealing in Foreign Exchange, Hiring Lockers, Opening Safe Custody Accounts, Issuing Letters of Credit,
Travelers’ Cheques, doing Mutual Fund business, Insurance Business, acting as Trustee or doing any
other business which Central Government may notify in the official Gazette.
Bouncing of a cheque: Where an account does not have sufficient balance to honour the cheque issued
by the customer, the cheque is returned by the bank with the reason "funds insufficient" or "Exceeds
arrangement”. This is known as 'Bouncing of a cheque’.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 52
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Basis Point: One hundredth of 1%. A measure normally used in the statement of interest rate e.g., a
change from 5.75% to 5.81% is a change of 6 basis points. Bear Markets: Unfavorable markets
associated with falling prices and investor pessimism.
Bid-ask Spread: The difference between a dealers’s bid and ask price.
Bid Price: The highest price offered by a dealer to purchase a given security.
Blue Chips: Blue chips are unsurpassed in quality and have a long and stable record of earnings and
dividends. They are issued by large and well-established firms that have impeccable financial
credentials.
Bond: Publicly traded long-term debt securities, issued by corporations and governments, whereby the
issuer agrees to pay a fixed amount of interest over a specified period of time and to repay a fixed
amount of principal at maturity.
Book Value: The amount of stockholders’ equity in a firm equals the amount of the firm’s assets minus
the firm’s liabilities and preferred stock.
Broker: Individuals licensed by stock exchanges to enable investors to buy and sell securities.
Brokerage Fee: The commission charged by a broker.
Bull Markets: Favorable markets associated with rising prices and investor optimism.
Call Option: The right to buy the underlying securities at a specified exercise price on or before a
specified expiration date.
Callable Bonds: Bonds that give the issuer the right to redeem the bonds before their stated maturity.
Capital Gain: The amount by which the proceeds from the sale of a capital asset exceed its original
purchase price.
Capital Markets: The market in which long-term securities such as stocks and bonds are bought and
sold.
Certificate of Deposits (CDs): Savings instrument in which funds must remain on deposit for a specified
period and premature withdrawals incur interest penalties.
Certificate of Deposit:. Certificate of Deposits are negotiable receipts in bearer form which can be freely
traded among investors. This is also a money market instrument,issued for a period ranging from 7 days
to f one year .The minimum deposit amount is Rs. 1 lakh and they are transferable by endorsement and
delivery.
Cheque: Cheque is a bill of exchange drawn on a specified banker ordering the banker to pay a certain
sum of money to the drawer of cheque or another person. Money is generally withdrawn by clients by
cheques. Cheque is always payable on demand.
Cheque Truncation: Cheque truncation truncates or stops the flow of cheques through the banking
system. Generally truncation takes place at the collecting branch, which sends the electronic image of
the cheques to the paying branch through the clearing house and stores the paper cheques with it.
Closed-end (Mutual) Fund: A fund with a fixed number of shares issued, and all trading is done between
investors in the open market. The share prices are determined by market prices instead of their net
asset value.
Collateral: A specific asset pledged against possible default on a bond. Mortgage bonds are backed by
claims on property. Collateral trusts bonds are backed by claims on other securities. Equipment
obligation bonds are backed by claims on equipment.
Commercial Paper: Short-term and unsecured promissory notes issued by corporations with very high
credit standings.
Common Stock: Equity investment representing ownership in a corporation; each share represents a
fractional ownership interest in the firm.
Compound Interest: Interest paid not only on the initial deposit but also on any interest accumulated
from one period to the next.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 53
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Contract Note: A note which must accompany every security transaction which contains information
such as the dealer’s name (whether he is acting as principal or agent) and the date of contract.
Controlling Shareholder: Any person who is, or group of persons who together are, entitled to exercise
or control the exercise of a certain amount of shares in a company at a level (which differs by
jurisdiction) that triggers a mandatory general offer, or more of the voting power at general meetings of
the issuer, or who is or are in a position to control the composition of a majority of the board of
directors of the issuer.
Convertible Bond: A bond with an option, allowing the bondholder to exchange the bond for a specified
number of shares of common stock in the firm. A conversion price is the specified value of the shares for
which the bond may be exchanged. The conversion premium is the excess of the bond’s value over the
conversion price.
Corporate Bond: Long-term debt issued by private corporations.
Coupon: The feature on a bond that defines the amount of annual interest income.
Coupon Frequency: The number of coupon payments per year.
Coupon Rate: The annual rate of interest on the bond’s face value that a bond’s issuer promises to pay
the bondholder. It is the bond’s interest payment per dollar of par value.
Covered Warrants: Derivative call warrants on shares which have been separately deposited by the
issuer so that they are available for delivery upon exercise.
Credit Rating: An assessment of the likelihood of an individual or business being able to meet its
financial obligations. Credit ratings are provided by credit agencies or rating agencies to verify the
financial strength of the issuer for investors.
Collecting Banker: Also called receiving banker, who collects on instruments like a cheque, draft or bill
of exchange, lodged with himself for the credit of his customer's account.
Consumer Protection Act: It is implemented from 1987 to enforce consumer rights through a simple
legal procedure. Banks also are covered under the Act. A consumer can file complaint for deficiency of
service with Consumer District Forum for amounts upto Rs.20 Lacs in District Court, and for amounts
above Rs.20 Lacs to Rs.1 Crore in State Commission and for amounts above Rs.1 Crore in National
Commission.
Co-operative Bank : An association of persons who collectively own and operate a bank for the benefit
of consumers / customers, like Saraswat Co-operative Bank or Abhyudaya Co-operative Bank and other
such banks.
Co-operative Society : When an association of persons collectively own and operate a unit for the
benefit of those using its services like Apna Bazar Co-operative Society or Sahakar Bhandar or a Cooperative Housing Society.
Core Banking Solutions (CBS): Core Banking Solutions is a buzz word in Indian banking at present, where
branches of the bank are connected to a central host and the customers of connected branches can do
banking at any breach with core banking facility.
Creditworthiness: It is the capacity of a borrower to repay the loan / advance in time along with interest
as per agreed terms.
Crossing of Cheques: Crossing refers to drawing two parallel lines across the face of the cheque. A
crossed cheque cannot be paid in cash across the counter, and is to be paid through a bank either by
transfer, collection or clearing. A general crossing means that cheque can be paid through any bank and
a special crossing, where the name of a bank is indicated on the cheque, can be paid only through the
named bank.
Customer: A person who maintains any type of account with a bank is a bank customer. Consumer
Protection Act has a wider definition for consumer as the one who purchases any service for a fee like
purchasing a demand draft or a pay order. The term customer is defined differently by Laws, softwares
and countries.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 54
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Current Account: Current account with a bank can be opened generally for business purpose. There are
no restrictions on withdrawals in this type of account. No interest is paid in this type of account.
Currency Board: A monetary system in which the monetary base is fully backed by foreign reserves. Any
changes in the size of the monetary base have to be fully matched by corresponding changes in the
foreign reserves.
Current Yield: A return measure that indicates the amount of current income a bond provides relative to
its market price. It is shown as: Coupon Rate divided by Price multiplied by 100%.
Custody of Securities: Registration of securities in the name of the person to whom a bank is
accountable, or in the name of the bank’s nominee; plus deposition of securities in a designated account
with the bank’s bankers or with any other institution providing custodial services.
Debit Card: A plastic card issued by banks to customers to withdraw money electronically from their
accounts. When you purchase things on the basis of Debit Card the amount due is debited immediately
to the account. Many banks issue Debit-Cum-ATM Cards.
Debtor: A person who takes some money on loan from another person.
Demand Deposits: Deposits which are withdrawn on demand by customers. E.g. savings bank and
current account deposits.
Demat Account: Demat Account concept has revolutionized the capital market of India. When a
depository company takes paper shares from an investor and converts them in electronic form through
the concerned company, it is called Dematerialization of Shares. These converted Share Certificates in
Electronic form are kept in a Demat Account by the Depository Company, like a bank keeps money in a
deposit account. Investor can withdraw the shares or purchase more shares through this demat
Account.
Derivative Call (Put) Warrants: Warrants issued by a third party which grant the holder the right to buy
(sell) the shares of a listed company at a specified price.
Derivative Instrument: Financial instrument whose value depends on the value of another asset.
Discount Bond: A bond selling below par, as interest in-lieu to the bondholders.
Dishonour of Cheque: Non-payment of a cheque by the paying banker with a return memo giving
reasons for the non-payment. Default Risk: The possibility that a bond issuer will default ie, fail to repay
principal and interest in a timely manner.
Diversification: The inclusion of a number of different investment vehicles in a portfolio in order to
increase returns or be exposed to less risk.
Duration: A measure of bond price volatility, it captures both price and reinvestment risks to indicate
how a bond will react to different interest rate environments.
Earnings: The total profits of a company after taxation and interest.
Earnings per Share (EPS): The amount of annual earnings available to common stockholders as stated
on a per share basis.
Earnings Yield: The ratio of earnings to price (E/P). The reciprocal is price earnings ratio (P/E).
E-Banking : E-Banking or electronic banking is a form of banking where funds are transferred through
exchange of electronic signals between banks and financial institution and customers ATMs, Credit
Cards, Debit Cards, International Cards, Internet Banking and new fund transfer devices like SWIFT, RTGS
belong to this category.
EFT - (Electronic Fund Transfer): EFT is a device to facilitate automatic transmission and processing of
messages as well as funds from one bank branch to another bank branch and even from one branch of a
bank to a branch of another bank. EFT allows transfer of funds electronically with debit and credit to
relative accounts.
Either or Survivor: Refers to operation of the account opened in two names with a bank. It means that
any one of the account holders have powers to withdraw money from the account, issue cheques, give
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 55
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
stop payment instructions etc. In the event of death of one of the account holder, the surviving account
holder gets all the powers of operation.
Electronic Commerce (E-Commerce): E-Commerce is the paperless commerce where the exchange of
business takes place by Electronic means.
Endorsement: When a Negotiable Instrument contains, on the back of the instrument an endorsement,
signed by the holder or payee of an order instrument, transferring the title to the other person, it is
called endorsement.
Bouncing of a cheque: Where the name of the endorsee or transferee is not mentioned on the
instrument.
Endorsement in Full: Where the name of the endorsee or transferee appears on the instrument while
making endorsement.
Equity: Ownership of the company in the form of shares of common stock.
Equity Call Warrants: Warrants issued by a company which give the holder the right to acquire new
shares in that company at a specified price and for a specified period of time.
Ex-dividend (XD): A security which no longer carries the right to the most recently declared dividend or
the period of time between the announcement of the dividend and the payment (usually two days
before the record date). For transactions during the ex-dividend period, the seller will receive the
dividend, not the buyer. Ex-dividend status is usually indicated in newspapers with an (x) next to the
stock’s or unit trust’s name.
Execution of Documents: Execution of documents is done by putting signature of the person, or affixing
his thumb impression or putting signature with stamp or affixing common seal of the company on the
documents with or without signatures of directors as per articles of association of the company.
Face Value/ Nominal Value: The value of a financial instrument as stated on the instrument. Interest is
calculated on face/nominal value.
Fixed-income Securities: Investment vehicles that offer a fixed periodic return.
Fixed Rate Bonds: Bonds bearing fixed interest payments until maturity date.
Floating Rate Bonds: Bonds bearing interest payments that are tied to current interest rates.
Factoring: Business of buying trade debts at a discount and making a profit when debt is realized and
also taking over collection of trade debts at agreed prices.
Foreign Banks: Banks incorporated outside India but operating in India and regulated by the Reserve
Bank of India (RBI),. e..g., Barclays Bank, HSBC, Citibank, Standard Chartered Bank, etc.
Forfeiting: In International Trade when an exporter finds it difficult to realize money from the importer,
he sells the right to receive money at a discount to a forfaiter, who undertakes inherent political and
commercial risks to finance the exporter, of course with assumption of a profit in the venture.
Forgery: when a material alteration is made on a document or a Negotiable Instrument like a cheque, to
change the mandate of the drawer, with intention to defraud.
Fundamental Analysis: Research to predict stock value that focuses on such determinants as earnings
and dividends prospects, expectations for future interest rates and risk evaluation of the firm.
Future Value: The amount to which a current deposit will grow over a period of time when it is placed in
an account paying compound interest.
Future Value of an Annuity: The amount to which a stream of equal cash flows that occur in equal
intervals will grow over a period of time when it is placed in an account paying compound interest.
Futures Contract: A commitment to deliver a certain amount of some specified item at some specified
date in the future.
Garnishee Order: When a Court directs a bank to attach the funds to the credit of customer's account
under provisions of Section 60 of the Code of Civil Procedure, 1908.
General Lien: A right of the creditors to retain possession of all goods given in security to him by the
debtor for any outstanding debt.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 56
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Guarantee: A contract between guarantor and beneficiary to ensure performance of a promise or
discharge the liability of a third person. If promise is broken or not performed, the guarantor pays
contracted amount to the beneficiary.
Hedge: A combination of two or more securities into a single investment position for the purpose of
reducing or eliminating risk.
Holder: Holder means any person entitled in his own name to the possession of the cheque, bill of
exchange or promissory note and who is entitled to receive or recover the amount due on it from the
parties. For example, if I give a cheque to my friend to withdraw money from my bank,he becomes
holder of that cheque. Even if he loses the cheque, he continues to be holder. Finder cannot become the
holder.
Holder in due course : A person who receives a Negotiable Instrument for value, before it was due and
in good faith, without notice of any defect in it, he is called holder in due course as per Negotiable
Instrument Act. In the earlier example if my friend lends some money to me on the basis of the cheque,
which I have given to him for encashment, he becomes holder-in-due course.
Hypothecation: Charge against property for an amount of debt where neither ownership nor possession
is passed to the creditor. In pledge, possession of property is passed on to the lender but in
hypothecation, the property remains with the borrower in trust for the lender.
Identification: When a person provides a document to a bank or is being identified by a person, who is
known to the bank, it is called identification. Banks ask for identification before paying an order cheque
or a demand draft across the counter.
Indemnifier: When a person indemnifies or guarantees to make good any loss caused to the lender from
his actions or others' actions.
Indemnity: Indemnity is a bond where the indemnifier undertakes to reimburse the beneficiary from
any loss arising due to his actions or third party actions.
Income: The amount of money an individual receives in a particular time period.
Index Fund: A mutual fund that holds shares in proportion to their representation in a market index,
such as the S&P 500.
Initial Public Offering (IPO): An event where a company sells its shares to the public for the first time.
The company can be referred to as an IPO for a period of time after the event.
Inside Information: Non-public knowledge about a company possessed by its officers, major owners, or
other individuals with privileged access to information.
Insider Trading: The illegal use of non-public information about a company to make profitable securities
transactions
Insolvent: Insolvent is a person who is unable to pay his debts as they mature, as his liabilities are more
than the assets . Civil Courts declare such persons insolvent. Banks do not open accounts of insolvent
persons as they cannot enter into contract as per law.
Interest Warrant: When cheque is given by a company or an organization in payment of interest on
deposit , it is called interest warrant. Interest warrant has all the characteristics of a cheque.
International Banking: involves more than two nations or countries. If an Indian Bank has branches in
different countries like State Bank of India, it is said to do International Banking.
Introduction: Banks are careful in opening any account for a customer as the prospective customer has
to be introduced by an existing account holder or a staff member or by any other person known to the
bank for opening of account. If bank does not take introduction, it will amount to negligence and will not
get protection under law.
Intrinsic Value: The difference of the exercise price over the market price of the underlying asset.
Investment: A vehicle for funds expected to increase its value and/or generate positive returns.
Investment Adviser: A person who carries on a business which provides investment advice with respect
to securities and is registered with the relevant regulator as an investment adviser.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 57
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
IPO price: The price of share set before being traded on the stock exchange. Once the company has
gone Initial Public Offering, the stock price is determined by supply and demand.
JHF Account : Joint Hindu Family Account is account of a firm whose business is carried out by Karta of
the Joint family, acting for all the family members.. The family members have common ancestor and
generally maintain a common residence and are subject to common social, economic and religious
regulations.
Joint Account: When two or more individuals jointly open an account with a bank.
Junk Bond: High-risk securities that have received low ratings (i.e. Standard & Poor’s BBB rating or
below; or Moody’s BBB rating or below) and as such, produce high yields, so long as they do not go into
default.
Karta: Manager of a Hindu Undivided Family (HUF) who handles the family business. He is usually the
eldest male member of the undivided family.
Kiosk Banking: Doing banking from a cubicle from which food, newspapers, tickets etc. are also sold.
KYC Norms: Know your customer norms are imposed by R.B.I. on banks and other financial institutions
to ensure that they know their customers and to ensure that customers deal only in legitimate banking
operations and not in money laundering or frauds.
Law of Limitation: Limitation Act of 1963 fixes the limitation period of debts and obligations including
banks loans and advances. If the period fixed for particular debt or loan expires, one cannot file a suit for
is recovery, but the fact of the debt or loan is not denied. It is said that law of limitation bars the remedy
but does not extinguish the right.
Lease Financing: Financing for the business of renting houses or lands for a specified period of time and
also hiring out of an asset for the duration of its economic life. Leasing of a car or heavy machinery for a
specific period at specific price is an example.
Letter of Credit: A document issued by importers bank to its branch or agent abroad authorizing the
payment of a specified sum to a person named in Letter of Credit (usually exporter from abroad). Letters
of Credit are covered by rules framed under Uniform Customs and Practices of Documentary Credits
framed by International Chamber of Commerce in Paris.
Limited Companies Accounts: Accounts of companies incorporated under the Companies Act, 1956 . A
company may be private or public. Liability of the shareholders of a company is generally limited to the
face value of shares held by them.
Leverage Ratio: Financial ratios that measure the amount of debt being used to support operations and
the ability of the firm to service its debt.
Libor: The London Interbank Offered Rate (or LIBOR) is a daily reference rate based on the interest rates
at which banks offer to lend unsecured funds to other banks in the London wholesale money market (or
interbank market). The LIBOR rate is published daily by the British Banker’s Association and will be
slightly higher than the London Interbank Bid Rate (LIBID), the rate at which banks are prepared to
accept deposits.
Limit Order: An order to buy (sell) securities which specifies the highest (lowest) price at which the
order is to be transacted.
Limited Company: The passive investors in a partnership, who supply most of the capital and have
liability limited to the amount of their capital contributions.
Liquidity: The ability to convert an investment into cash quickly and with little or no loss in value.
Listing: Quotation of the Initial Public Offering company’s shares on the stock exchange for public
trading.
Listing Date: The date on which Initial Public Offering stocks are first traded on the stock exchange by
the public
Margin Call: A notice to a client that it must provide money to satisfy a minimum margin requirement
set by an Exchange or by a bank / broking firm.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 58
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Market Capitalization: The product of the number of the company’s outstanding ordinary shares and
the market price of each share.
Market Maker: A dealer who maintains an inventory in one or more stocks and undertakes to make
continuous two-sided quotes.
Market Order: An order to buy or an order to sell securities which is to be executed at the prevailing
market price.
Money Market: Market in which short-term securities are bought and sold.
Marginal Standing Facility Rate: MSF scheme has become effective from 09th May, 2011 launched by
the RBI. Under this scheme, Banks will be able to borrow upto 1% of their respective Net Demand and
Time Liabilities. The rate of interest on the amount accessed from this facility will be 100 basis points
(i.e. 1%) above the repo rate. This scheme is likely to reduce volatility in the overnight rates and improve
monetary transmission.
Mandate: Written authority issued by a customer to another person to act on his behalf, to sign
cheques or to operate a bank account.
Material Alteration: Alteration in an instrument so as to alter the character of an instrument for
example when date, amount, name of the payee are altered or making a cheque payable to bearer from
an order one or opening the crossing on a cheque.
Merchant Banking : When a bank provides to a customer various types of financial services like
accepting bills arising out of trade, arranging and providing underwriting, new issues, providing advice,
information or assistance on starting new business, acquisitions, mergers and foreign exchange.
Micro Finance: Micro Finance aims at alleviation of poverty and empowerment of weaker sections in
India. In micro finance, very small amounts are given as credit to poor in rural, semi-urban and urban
areas to enable them to raise their income levels and improve living standards.
Minor Accounts: A minor is a person who has not attained legal age of 18 years. As per Contract Act a
minor cannot enter into a contract but as per Negotiable Instrument Act, a minor can draw, negotiate,
endorse, receive payment on a Negotiable Instrument so as to bind all the persons, except himself. In
order to boost their deposits many banks open minor accounts with some restrictions.
Mobile Banking : With the help of M-Banking or mobile banking customer can check his bank balance,
order a demand draft, stop payment of a cheque, request for a cheque book and have information
about latest interest rates.
Money Laundering: When a customer uses banking channels to cover up his suspicious and unlawful
financial activities, it is called money laundering.
Money Market: Money market is not an organized market like Bombay Stock Exchange but is an
informal network of banks, financial institutions who deal in money market instruments of short term
like CP, CD and Treasury bills of Government.
Moratorium: R.B.I. imposes moratorium on operations of a bank; if the affairs of the bank are not
conducted as per banking norms. After moratorium R.B.I. and Government explore the options of
safeguarding the interests of depositors by way of change in management, amalgamation or take over
or by other means.
Mortgage: Transfer of an interest in specific immovable property for the purpose of offering a security
for taking a loan or advance from another. It may be existing or future debt or performance of an
agreement which may create monetary obligation for the transferor (mortgagor).
Mutual Fund: A company that invests in and professionally manages a diversified portfolio of securities
and sells shares of the portfolio to investors.
NABARD: National Bank for Agriculture & Rural Development was setup in 1982 under the Act of 1981.
NABARD finances and regulates rural financing and also is responsible for development agriculture and
rural industries.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 59
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Negotiation: In the context of banking, negotiation means an act of transferring or assigning a money
instrument from one person to another person in the course of business.
Net Asset Value: The underlying value of a share of stock in a particular mutual fund; also used with
preferred stock.
Non-Fund Based Limits: Non-Fund Based Limits are those type of limits where banker does not part with
the funds but may have to part with funds in case of default by the borrowers, like guarantees, letter of
credit and acceptance facility.
Non-Resident: A person who is not a resident of India is a non-resident.
Non-Resident Accounts: Accounts of non-resident Indian citizens opened and maintained as per R.B.I.
Rules.
Notary Public: A Lawyer who is authorized by Government to certify copies of documents .
NPA Account: If interest and instalments and other bank dues are not paid in any loan account within a
specified time limit, it is being treated as non-performing assets of a bank.
Off Balance Sheet Items: Those items which affect the financial position of a business concern, but do
not appear in the Balance Sheet E,g guarantees, letters of credit . The mention "off Balance Sheet items"
is often found in Auditors Reports or Directors Reports.
Offer for Sale: An offer to the public by, or on behalf of, the holders of securities already in issue.
Offer for Subscription: The offer of new securities to the public by the issuer or by someone on behalf of
the issuer.
Online Banking: Banking through internet site of the bank which is made interactive.
Open-end (Mutual) Fund: There is no limit to the number of shares the fund can issue. The fund issues
new shares of stock and fills the purchase order with those new shares. Investors buy their shares from,
and sell them back to, the mutual fund itself. The share prices are determined by their net asset value.
Open Offer: An offer to current holders of securities to subscribe for securities whether or not in
proportion to their existing holdings.
Option: A security that gives the holder the right to buy or sell a certain amount of an underlying
financial asset at a specified price for a specified period of time.
Oversubscribed: When an Initial Public Offering has more applications than actual shares available.
Investors will often apply for more shares than required in anticipation of only receiving a fraction of the
requested number. Investors and underwriters will often look to see if an IPO is oversubscribed as an
indication of the public’s perception of the business potential of the IPO company.
Pass Book: A record of all debit and credit entries in a customer's account. Generally all banks issue pass
books to Savings Bank/Current Account Holders.
Par Bond: A bond selling at par (i.e. at its face value).
Par Value: The face value of a security.
Perpetual Bonds: Bonds which have no maturity date.
Placing: Obtaining subscriptions for, or the sale of, primary market, where the new securities of issuing
companies are initially sold.
Personal Identification Number (PIN): Personal Identification Number is a number which an ATM card
holder has to key in before he is authorized to do any banking transaction in a ATM .
Plastic Money: Credit Cards, Debit Cards, ATM Cards and International Cards are considered plastic
money as like money they can enable us to get goods and services.
Pledge: A bailment of goods as security for payment of a debt or performance of a promise, e.g pledge
of stock by a borrower to a banker for a credit limit. Pledge can be made in movable goods only.
Post-Dated Cheque: A Cheque which bears the date which is subsequent to the date when it is drawn.
For example, a cheque drawn on 8th of February, 2007 bears the date of 12th February, 2007.
Power of Attorney: It is a document executed by one person - Donor or Principal, in favour of another
person, Donee or Agent - to act on behalf of the former, strictly as per authority given in the document.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 60
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Portfolio: A collection of investment vehicles assembled to meet one or more investment goals.
Preference Shares: A corporate security that pays a fixed dividend each period. It is senior to ordinary
shares but junior to bonds in its claims on corporate income and assets in case of bankruptcy.
Premium (Warrants): The difference of the market price of a warrant over its intrinsic value.
Premium Bond: Bond selling above par.
Present Value: The amount to which a future deposit will discount back to present when it is
depreciated in an account paying compound interest.
Present Value of an Annuity: The amount to which a stream of equal cash flows that occur in equal
intervals will discount back to present when it is depreciated in an account paying compound interest.
Price/Earnings Ratio (P/E): The measure to determine how the market is pricing the company’s
common stock. The price/earnings (P/E) ratio relates the company’s earnings per share (EPS) to the
market price of its stock.
Privatization: The sale of government-owned equity in nationalized industry or other commercial
enterprises to private investors.
Prospectus: A detailed report published by the Initial Public Offering company, which includes all terms
and conditions, application procedures, IPO prices etc, for the IPO
Put Option: The right to sell the underlying securities at a specified exercise price on of before a
specified expiration date.
Premature Withdrawals: Term deposits like Fixed Deposits, Call Deposits, Short Deposits and Recurring
Deposits have to mature on a particular day. When these deposits are sought to be withdrawn before
maturity , it is premature withdrawal.
Prime Lending Rate (PLR): The rate at which banks lend to their best (prime) customers.
Priority Sector Advances : consist of loans and advances to Agriculture, Small Scale Industry, Small Road
and Water Transport Operators, Retail Trade, Small Business with limits on investment in equipments,
professional and self employed persons, state sponsored organisations for lending to SC/ST, Educational
Loans, Housing Finance up to certain limits, self-help groups and consumption loans.
Promissory Note: Promissory Note is a promise / undertaking given by one person in writing to another
person, to pay to that person , a certain sum of money on demand or on a future day.
Provisioning: Provisioning is made for the likely loss in the profit and loss account while finalizing
accounts of banks. All banks are supposed to make assets classification and make appropriate provisions
for likely losses in their balance sheets.
Public Sector Bank: A bank fully or partly owned by the Government.
Rate of Return: A percentage showing the amount of investment gain or loss against the initial
investment.
Real Interest Rate: The net interest rate over the inflation rate. The growth rate of purchasing power
derived from an investment.
Redemption Value: The value of a bond when redeemed.
Reinvestment Value: The rate at which an investor assumes interest payments made on a bond which
can be reinvested over the life of that security.
Relative Strength Index (RSI): A stock’s price that changes over a period of time relative to that of a
market index such as the Standard & Poor’s 500, usually measured on a scale from 1 to 100, 1 being the
worst and 100 being the best.
Repurchase Agreement: An arrangement in which a security is sold and later bought back at an agreed
price and time.
Resistance Level: A price at which sellers consistently outnumber buyers, preventing further price rises.
Return: Amount of investment gain or loss.
Rescheduling of Payment: Rearranging the repayment of a debt over a longer period than originally
agreed upon due to financial difficulties of the borrower.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 61
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
Restrictive Endorsement: Where endorser desires that instrument is to be paid to particular person
only, he restricts further negotiation or transfer by such words as "Pay to Ashok only". Now Ashok
cannot negotiate the instrument further.
Right of Appropriation: As per Section 59 of the Indian Contract Act, 1972 while making the payment, a
debtor has the right to direct his creditor to appropriate such amount against discharge of some
particular debt. If the debtor does not do so, the banker can appropriate the payment to any debt of his
customer.
Right of Set-Off : When a banker combines two accounts in the name of the same customer and adjusts
the debit balance in one account with the credit balance in other account, it is called right of set-off. For
example, debit balance of Rs.50,000/- in overdraft account can be set off against credit balance of
Rs.75,000/- in the Savings Bank Account of the same customer, leaving a balance of Rs.25,000/- credit in
the savings account.
Rights Issue: An offer by way of rights to current holders of securities that allows them to subscribe for
securities in proportion to their existing holdings.
Risk-Averse, Risk-Neutral, Risk-Taking:
Risk-averse describes an investor who requires greater return in exchange for greater risk.
Risk-neutral describes an investor who does not require greater return in exchange for greater risk.
Risk-taking describes an investor who will accept a lower return in exchange for greater risk.
Safe Custody: When articles of value like jewellery, boxes, shares, debentures, Government bonds, Wills
or other documents or articles are given to a bank for safe keeping in its safe vault, it is called safe
custody.. Bank charges a fee from its clients for such safe custody.
Savings Bank Account: All banks in India are having the facility of opening savings bank account with a
nominal balance. This account is used for personal purposes and not for business purpose and there are
certain restrictions on withdrawals from this type of account. Account holder gets nominal interest in
this account.
Senior Bond: A bond that has priority over other bonds in claiming assets and dividends.
Settlement: Conclusion of a securities transaction when a customer pays a broker/dealer for securities
purchased or delivered, securities sold, and receive from the broker the proceeds of a sale.
Short Hedge: A transaction that protects the value of an asset held by taking a short position in a futures
contract.
Short Position: Investors sell securities in the hope that they will decrease in value and can be bought at
a later date for profit.
Short Selling: The sale of borrowed securities, their eventual repurchase by the short seller at a lower
price and their return to the lender.
Speculation: The process of buying investment vehicles in which the future value and level of expected
earnings are highly uncertain.
Stock Splits: Wholesale changes in the number of shares. For example, a two for one split doubles the
number of shares but does not change the share capital.
Subordinated Bond: An issue that ranks after secured debt, debenture, and other bonds, and after
some general creditors in its claim on assets and earnings. Owners of this kind of bond stand last in line
among creditors, but before equity holders, when an issuer fails financially.
Substantial Shareholder: A person acquires an interest in relevant share capital equal to, or exceeding,
10% of the share capital.
Support Level: A price at which buyers consistently outnumber sellers, preventing further price falls.
Teller : Teller is a staff member of a bank who accepts deposits, cashes cheques and performs other
banking services for the public.
Technical Analysis: A method of evaluating securities by relying on the assumption that market data,
such as charts of price, volume, and open interest, can help predict future (usually short-term) market
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 62
IBPS CLERK MAINS 2016 | WWW.GOVTONLINEEXAM.COM
trends. Contrasted with fundamental analysis which involves the study of financial accounts and other
information about the company. (It is an attempt to predict movements in security prices from their
trading volume history.)
Time Horizon: The duration of time an investment is intended for.
Trading Rules: Stipulation of parameters for opening and intra-day quotations, permissible spreads
according to the prices of securities available for trading and board lot sizes for each security.
Trust Deed: A formal document that creates a trust. It states the purpose and terms of the name of the
trustees and beneficiaries.
Underwriting : is an agreement by the underwriter to buy on a fixed date and at a fixed rate, the
unsubscribed portion of shares or debentures or other issues. Underwriter gets commission for this
agreement.
Underlying Security: The security subject to being purchased or sold upon exercise of the option
contract.
Universal Banking : When Banks and Financial Institutions are allowed to undertake all types of
activities related to banking like acceptance of deposits, granting of advances, investment, issue of
credit cards, project finance, venture capital finance, foreign exchange business, insurance etc. it is
called Universal Banking.
Valuation: Process by which an investor determines the worth of a security using risk and return
concept.
Virtual Banking: Virtual banking is also called internet banking, through which financial and banking
services are accessed via internet's World Wide Web. It is called virtual banking because an internet
bank has no boundaries of brick and mortar and it exists only on the internet.
Warrant: An option for a longer period of time giving the buyer the right to buy a number of shares of
common stock in company at a specified price for a specified period of time.
Wholesale Banking: Wholesale banking is different from Retail Banking as its focus is on providing for
financial needs of industry and institutional clients.
Window Dressing: Financial adjustments made solely for the purpose of accounting presentation,
normally at the time of auditing of company accounts.
Yield (Internal rate of Return): The compound annual rate of return earned by an investment
Yield to Maturity: The rate of return yield by a bond held to maturity when both compound interest
payments and the investor’s capital gain or loss on the security are taken into account.
Zero Coupon Bond: A bond with no coupon that is sold at a deep discount from par value.
FOR DAILY WHATS APP UPDATES SEND NAME ON 7722001149
Page 63