Banking Awareness Important Questions With Answer For Exams & Interview

Masala Bonds
Masala Bonds are the bonds issued for rupee-denominated borrowings by Indian entities in overseas markets.

Indian Depository Receipts (IDRs)
IDR is an instrument in the form of a Depository Receipt created by the Indian depository in India against the underlying equity shares of the issuing company. In an IDR, foreign companies would issue shares, to an Indian companies would issue shares, to an Indian Depository which would in turn issue depository receipts to investors in India.

Non-Performing Asset (NPA)
It means once the borrower has failed to make interest or principal payments for 90 days, the loan is considered to be a non-performing asset.Loan accounts are classified as non-performing asset on the basis of following criteria:
Criteria for classification of loan as NPA

Farm Credit within Agriculture loans : A loan will be treated as an NPA if installment of the principal or interest remains unpaid beyond the due date for
(a) two crop seasons in case of short duration crops (maturing within one year) &
(b) one crop season for long duration crops (maturing after one year).
This would also be applicable, mutatis mutandis, to agricultural term loans. In other agriculture loans, the 90 days norm would be applicable.

What is White Label ATMs (WLAs)?
ATMs set up, owned & operated by non-banks are called White Label ATMs. Non-bank ATM operators are authorized under Payment & Settlement Systems Act, 2007 by the Reserve Bank of India.

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