Friday 25 February 2011

Basic terms of business and commerceb

21. What is ombudsman? 
It is the executive, who tries to handle public grievances (complaint). Now ombudsman is appointed in every department In banks also we have banking ombudsman it is there to stop corruption

22. What is IBA?
Indian Banks association it promotes knowledge about banking and promotes research in this sector. It conducts some sources for banking professionals

23. What is IDRBT? 
Institute of development and research in banking technology it is located in Hyderabad it introduces latest technology in banking it also conducts training programmes in banking technology

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 25. What is SLR?
Statutory liquidity ratio : banks have to keep some part of their deposits in government securities / specified investments, this is called SLR
 

26. WHAT IS CRR? 
Cash Reserve Ratio : banks have to keep some % of their deposits in cash with RBI, this is called CRR. Current rate : 5.75 % when liquidity is more in the system, CRR is increase. Reently RBI increase it by .75 so as to reduce liquidity in the system and to reduce inflation.

27. WHAT IS BANK RATE?
The rate at which RBI lends to other banks or discounts the bills of other banks is called bank rate. It is 6% now


28. What is PLR ? 
The rate at which banks give loans to their best customers, is called PLR. P=prime (best customers) L = lending R = rate suppose a bank is giving loan to a govt. Department - it will give at PLR. To an ordinary customer, the bank will give at PLR + SOME POINTS.
 29. Who decides PLR ? 
Each bank decides at its own – what is its PLR. PLR depends on the costing of the bank.

30. What is LIBOR?
LONDON INTERBANK OFFERED RATE it is the most popular international base rate. Most international transactions take place on this rate. There are many other rates also like this like : MIBOR = mumbai inter bank offered rate.

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