Mandatory Provident Fund Schemes Authority Vi.2: Fill & Download for Free

For officers there will be questions on economics, banking, finance and general affairs only (the recent events)Please note that the interview for bank placements are conducted by retired bank officials and more than 95 percent questions will be only on the above subjects and rarely one or two questions will be asked in engineering - electronics, information technology, mechanical engineering etc.,In fact the exact qualification meant for bank job is B. Com.The graduate knows about various types of accounting, economics, finance, management accounting etc and he will be more comfortable than others.Please concentrate on the following subjects:Types of accountsTypes of firmsFinancial statementsBalance sheet, profit and loss account, cash flow statement and funds flow statementVarious balance sheet ratiosVarious financial termsRead the following sample questions:Selected Interview QuestionsCandidate: 00101.Why you are willing to join in a bank?I am willing to join in a bank since I hope that I may be having more opportunities to serve the public. Banks have better career opportunities by means of periodical promotions to higher cadre.02.What do you mean by appraisal of gold loans?Gold loans are granted against the security of gold jewellery namely gold chains, necklaces etc., The jewellery apart from gold contains certain amount of copper and stones. Appraiser is a person well versed in the art of appraising the jewellery and on appraisal of the jewellery, he will be finding out the approximate gold content so that the bank may be able to provide loans against the gold content.03.What are the different kinds of term deposits available in a commercial bank?The different kinds of term deposits available in a commercial bank are – fixed deposit, recurring deposit and reinvestment deposit. In the case of fixed deposit, a fixed amount is accepted for a definite period and interest is paid on quarterly basis. In the case of reinvestment deposit which is similar to fixed deposit, interest is paid on maturity since interest is reinvested. In the case of recurring deposit, monthly instalments are accepted for a fixed period.04.What is the minimum period for which a fixed deposit is accepted and the maximum period for which a fixed deposit is accepted?The minimum period for which fixed deposit is accepted is seven days and the maximum period is ten years.05.Whether a fixed deposit can be accepted for a period more than ten years?In the case of deposits in the names of minors on account of settlement of claims, the deposit can be for more than ten years06.What do you mean by FERA?FERA means foreign exchange regulations act and it came into effect from the year 1973. An act to regulate certain payments dealing in foreign exchange, securities, the import & export of currency and acquisition of immovable property by foreigners. Under Section 31 (1) of the Foreign Exchange Regulation Act ( FERA) of 1973, it is mandatory for foreign corporations, which are not incorporated in India to obtain permission from the Reserve Bank Of India (RBI) to acquire, hold, transfer or dispose off in any manner (expect by way of lease for a period not exceeding five years) any immovable property in India.07.What do you mean by ECS?ECS means electronic clearing service and the customer can authorize on periodical basis to make payment of certain utility bills like electricity charges, water charges etc., by debiting his account till such time he submits a revocation letter. Similarly, he can authorize corporate to credit the dividends on shares and interest on debentures as and when due to the credit of his account with the bank.08.What is the minimum amount that can be sent through RTGS?The minimum amount that can be sent through RTGS is Rupees two lakhs and there is no maximum limit09.What is the maximum amount that can be remitted through NEFT?There is no or maximum limit for remittances sent through NEFT10.What is the maximum amount that can be sent abroad by any resident individual?Under liberalized remittance scheme, all resident individuals including minors are allowed to freely remit an amount upto US dollars 250000 (or its equivalent freely convertible foreign currency) per financial year11..What is the name of apex bank which is responsible for the development of agriculture in the country?NABARD is the apex bank which is responsible for the development of agriculture in the country.12.What are the different kinds of schemes available in our country aiming towards poverty alleviation?National old age pension scheme; Jawahar Gramin Samruddi Yojana; National Family Benefit scheme; Mahatma Gandhi National Rural Employment Guarantee Scheme; National Maternal Benefit Schemel Annapurna etc.,13.What do you mean by crossing of any cheque?Writing of two parallel transverse lines drawn on the face of the cheque on top left hand corner with or without any words between the lines is known as crossing and it is for the purpose of making payment of the cheque through an account in the name of the payee or holder.14.What are the different kinds of crossing?Two parallel transverse lines drawn on the face of the cheque on top left hand corner of the cheque with any words or without any words is known as general crossing and the the payment can be made to the account of the payee or holder with any bank. In case the name of any bank is mentioned within the two parallel lines, it is known as special crossing and in this case, the payment should be made to the account of the payee or holder with the bank mentioned in the crossing only and not to any other bank.15.What do you mean by CASA?CASA means current and savings and this is applicable to computerized branches linked under core banking solution16.Whose signature is available in Rs. 100/- currency note?The signature of RBI governor is available in Rs. 100 currency note17.What do you know by dividend?Dividend is the return available in the form of money for the investments made by the shareholders in the equity shares and preference shares of any company.18.Bank holidays are declared according to which act?Holidays for banks are declared according to Negotiable Instruments act 1881 by the respective state governments in their states. However, all Sundays, all second and fourth Saturdays have been declared as holidays apart from the holidays permitted for religious and national ceremonies.19.Banks are functioning according to which act?Commercial banks in the country are functioning according to Banking Regulation act 1949 and to some extent as per Reserve Bank of India act 193420.RBI is functioning in the country as per which act?Reserve Bank of India is functioning according to Reserve Bank of India act 1934.Candidate: 00201.What do you mean by a guarantee?Guarantee is an undertaking executed by one person called as guarantor in favour of another person called as beneficiary expressing his intention to make payment in the event of failure of the principal debtor on payment of a debt or failure to perform any contract within the stipulated time or according to the terms of the contract.02.What are the different types of guarantees?The different types of guarantees are financial guarantee, performance guarantee and deferred payment guarantee03.What do you mean by letter of credit?Letter of credit is an undertaking executed by one banker on behalf of its customer to honour bills and documents drawn by another person as per the terms and conditions as mentioned in the letter of credit04.What do you know by packing credit advance?It is the preshipment advance granted by one bank to the exporter for the purpose of procuring raw materials; payment of various duties like customs duty, excise duty; packing charges; shipment charges etc.,05.What do you mean by special crossing?In case the name of any bank is mentioned within the two parallel lines, it is known as special crossing and in this case, the payment should be made to the account of the payee or holder with the bank mentioned in the crossing only and not to any other bank.06.What do you know by IFSC code ?IFSC means Indian Financial System Code and this is one alphanumeric code consisting of eleven digits of which the four alphabetic digits represent the name of the bank mentioned in abridged form and the next zero is known as control number and the last six numeric digits represent the branch code of the bank.07.Which is called as mother of deposits?Savings deposit is known as mother of deposits. Normally the first time customers will be advised to open savings deposits with the bank branch before availing any other facility with the bank08.Who is a called as natural guardian?Bother mother and father are known as natural guardian for the purpose of opening accounts in the name of minors represented by the guardian.09.Whether grandfathers and grandmothers can be natural guardians?Grand fathers, grandmothers grand grandfathers or grand grandmothers cannot represent as natural guardians on be behalf of the minors10.Which type of credit facility is available to a farmer for raising crops?For raising crops, the farmers are provided with crop loans, Kisan Credit Cards etc.,11.What do you mean by NULM?National Urban Livelihoods Mission (NULM) was launched by the Ministry of Housing and Urban Poverty Alleviation (MHUPA), Government of India in 24th September, 2013 by replacing the existing Swarna Jayanti Shahari Rozgar Yojana (SJSRY).The NULM will focus on organizing urban poor in their strong grassroots level institutions, creating opportunities for skill development leading to market-based employment and helping them to set up self-employment venture by ensuring easy access to credit. The Mission is aimed at providing shelter equipped with essential services to the urban homeless in a phased manner. In addition, the Mission would also address livelihood concerns of the urban street vendors12.What do you mean by Gram Sadak Yojana?The Pradhan Mantri Gram Sadak Yojana called as PMGSY was launched by the Government of India for the purpose of providing connectivity to unconnected habitations as part of a poverty reduction strategy. Government of India is endeavouring to set high and uniform technical and management standards and facilitating policy development and planning at state level in order to ensure sustainable management of the rural roads network.13.What are the salient features of MGNREGA?MGNREGA is known as Mahatma Gandhi National Rural Employment Guarantee act and according to this employment is guaranteed at least one person per household in rural areas. It aims at enhancing the livelihood security of people living in rural areas by guaranteeing hundred days of wage employment during each financial year to a rural household whose adult members volunteers to undertake unskilled manual work14.Which authority is supervising the functions of insurance companies?IRDA – Insurance Regulatory and Development Authority is the authority responsible for supervising the functions of insurance companies in our country15.What is meant by IPO?IPO means initial public offer and this is the first time public offer of equity shares, preference shares or debentures to the public for subscription16.What is meant by ASBA?ASBA means applications supported by blocked amount. Nowadays investors are permitted to remit the amount through ASBA demand drafts drawn in ASBA accounts for the purpose of subscribing shares or debentures through initial public offer and further public offer. When the demand draft is issued, instead of debiting the amount in the account, the amount is blocked till such time the shares or debentures are allotted. On allotment, the entire amount is debited; in the case of partial allotment, the amount is debited equivalent to the value of allotment and in the case of non allotment, the entire amount is allowed for further use. For the intervening period, the depositor earns interest as applicable to the category of deposits.17.What is meant by Performance guarantee issued by any commercial bank?In the case of contracts in favour of governments, the contractors are in a position to provide a bank guarantee by a reputed commercial bank, thereby undertaking to guarantee the government department to compensate the loss on account of failure of performance of the contract by the contractor within the due date or failure to perform the contract as per the terms and conditions of the contract. This is known as performance guarantee.18.What do you mean by packing credit facility issued by any commercial bank?Packing guarantee is known as preshipment advance provided by the commercial bank to the exporter for the purpose of procuring raw materials, packing materials or making payment towards customers duty, excise duty, transportation charges etc.,19.What do you mean by notice money?Notice money is money borrowed for a period of two days and more and upto fourteen days in the call money market.20.Treasury bills are issued by which authority and what are the different kinds of treasury bills available in the country?Treasury bills are issued by central government and state governments for the purpose of mobilizing funds from the public and others towards meeting the cost of various projects. There are three kinds of treasury bills as at present namely – 91 days, 182 days and 364 days. 91 days treasury bills are issued each Friday and the notified amount is Rupees one hundred crores. 182 day treasury bills are issued during alternative Wednesdays which is non reporting week and the notified amount is Rupees 100 crores and 364 days treasury bills are issued on alterntive Wednesdays which is a reporting week and the notified amount is Rupees 500 crores.Candidate: 00301.What do you know by PIN number?PIN number is four digit number expressed in numerical characters. PIN number is used for the transactions done using debit cards and credit cards through automated teller machines and point of sale terminals.02.What do you know by PAN number?PAN number is known as permanent account number. This is used for the purpose of remittance of income tax with income tax department. Tax payers should get one PAN number by sending an application along with relevant documents and by payment of specified sum of money to Income tax department or their agencies. It is ten digit number consisting and alphapetical and numerical characters.03.What are the functions of DICGC?DICGC means Deposit Insurance and Credit Guarantee Corporation and this corporation provides deposit insurance upto an amount of Rupees one lakh per depositor per bank in the event of insolvency of the bank and it also provides small loans guarantee upto certain limits04.What is the role played by ECGC?ECGC provides guarantee support to the exporters of the country in the form of several export guarantees05.Mention the Regional Rural Banks which are functioning in Tamilnadu?The Regional rural banks which are functioning in Tamilnadu are Pandiyan Grama Bank and Pallavan Gramin Bank. Pandiyan Grama Bank has been sponsored by Indian Overseas Bank and pallavan Gramin Bank has been sponsored by Indian bank.06.What do you mean by Mergers and what are the different kinds of mergers?When two independent units merge together to form a single unit, it is known as merger. The mergers can be vertical merger, horizontal merger, reverse merger, consolidation, amalgamation etc.,07.What do you mean by horizontal merger and reverse merger?When the business functions of two units are identical in nature and when the merger takes place between those units, it is known as horizontal merger. New Bank of India merged with Punjab National Bank and both are banking organizations. Industrial Credit and Investment Corporation of India Limited was instrumental in establishing ICICI bank as per LPG norms and subsequently Industrial Credit and Investment Corporation Limited merged with ICICI Bank and when a parent unit gets merged with an ancillary unit, it is known as reverse merger.08.Which are the top two private sector banks in our country?The top private sector banks in our country are HDFC bank limited and ICICI bank limited09.Whether housing loan is a priority sector advance and if so, upto what amount?Housing loans granted are treated as priority sector advances subject to certain conditions. Loans to individuals up to Rupees 28 lakh in metropolitan centres (with population of ten lakh and above) and loans up to Rupees 20 lakh in other centres for purchase/construction of a dwelling unit per family, are eligible to be considered as priority sector provided the overall cost of the dwelling unit in the metropolitan centre and at other centres does not exceed Rupees 35 lakh and Rupees 25 lakh, respectively. Housing loans to banks’ own employees are not eligible for classification under priority sector.10.Whether educational loan is a priority sector advance?Loans to individuals for educational purposes including vocational courses upto Rupees 10 lakh irrespective of the sanctioned amount are eligible for classification under priority sector.11.What do you mean by micro, small and medium enterprises?The classification is based on original investment in plant and machinery: For micro enterprises, upto Rs. 25 lakhs for manufacturing units and Rupees 10 lakhs for service units; For small enterprises, for manufacturing units above Rupees 25 lakhs and upto Rs. 5 crores and for service units above Rupees 10 lakhs and upto Rupees 2 crores; For medium enterprises, for manufacturing units above Rupees 5 crores and upto 10 crores and for service units above Rupees 2 crores and upto Rupees five crores12.What do you mean by KYC and name any two important documents which are obtained as per KYC?KYC means know your customer guidelines and these guidelines were prescribed by RBI for new customers who are willing to open accounts with commercial banks and according to KYC, any new customer who is willing to open accounts with commercial banks should submit the photocopy of anyone of the following namely; driving licence, voter id card, AADHAARA card, passport as address proof and photocopy of anyone of the following namely; driving licence, voter id card, AADHAAR card, passport, pancard as identity proof. KYC is antimony laundering device.13.What is the present repo rate and reverse repo rate?The present repo rate is 6.25% and reverse repo rate is 5.75%14.In the case of MICR code, the middle three digits represent what?MICR code consists of nine numerical digits and the middle three numerical digits represent bank name15.PAN number consists of how many alpha characters?PAN number consists of ten digits. The first three alpha characters are random alphapetical characters between AAA to ZZZ; next one alpha character represents the category of the cardholder; the next one alpha character represents the first character of the name of the cardholder; the next four numerical digits are auto generated sequential numbers and the last one single alpha character is a check digit.16.What do you know by biometric automated teller machines?In the case of automated teller machines, the four digit numerical PIN number is used for performing transactions using debit card and credit card. In the case of biometric automated teller machines, instead of PIN numbers, anyone of the following body parts is used – left hand thumb impression; eye retina and voice recognition. In India, the left hand thumb impression is the accepted mode and these kinds of automated teller machines are known as green label automated teller machines.17.What is the criteria by which a bank is considered as largest bank?For the purpose of ranking, a bank is considered to be largest or smallest taking into consideration the business position of the bank; namely – the total deposits and total advances as at the end of March each year.18.What do you mean by commercial paper?Commercial papers are issued by well rated organizations for mobilizing funds from the public and other corporate. They are issued at a discount and they are freely negotiable by endorsement and delivery. The minimum maturity period is seven days and the corporate should have earned credit rating equivalent to P2 issued by CRISIL19.What do you mean by FCNR?FCNR means foreign currency non resident accounts. Non resident Indians and Persons of Indian origin are eligible to invest in this deposit. It is a term deposit accepted in the currencies – US dollar, Sterling Pound, Euro, Japanese Yen, Canadian dollar and Australian dollar. The minimum period of deposit is one year and the maximum period is five years and the deposit is held in foreign currencies and the interest earned is free from income tax.20.What do you mean by Escheat?He is a person who dies without leaving any legal heirs and in this case, his estate will revert to the state government.Candidate: 00401.What do you mean by money laundering?Using the banking channel for the purpose of bringing illegal money is known as money laundering.02.What do you mean by subprime lending?Mass lending by commercial banks to the borrowers without ascertaining the credit worthiness of the borrowers03.What is meant by LPG and who is responsible for introduction of LPG strategy in our country?LPG means liberalization, privatization and globalization and this was coined by Dr. Manmohan Singh, the then finance minister of our country. The salient highlights of the Liberalisation, Privatisation and Globalisation Policy in India are: Foreign Technology Agreements; Foreign Investment; MRTP Act, 1969 (Amended); Industrial Licensing; Deregulation Beginning of privatization; Opportunities for overseas trade; Steps to regulate inflation; Tax reforms; Abolition of License -Permit Raj04.What do you mean by PURA?PURA means providing urban amenities in rural areas. This concept was coined by Dr. A.P.J. Abdul Kalam, the then president of India.05.What do you know by current ratio?It is one equation between current assets and current liabilities. This ratio provides the liquidity position of the organization. When the ratio is more than one it is known as positive current ratio and the unit is having sufficient working capital and when it is less than one, the unit is found to have more current liabilities than current assets and the liquidity position is found to be very weak.06.What do you know about negotiable instruments act?In India, the negotiable instruments act was passed during 1881 which came into force with effect from March 01, 1882. Negotiable instruments means and include promissory note, bills of exchange and cheque payable to order or bearer. Promissory note, bill of exchange, cheque and demand draft are negotiable instruments.07.What do you know by MICR?MICR means magnetic ink character recognition. MICR code is available in MICR bank at the bottom of the cheque or demand draft. It consists of nine numerical digits of which the first three digits represent the centre/city; the middle three digits represent the bank and the last three digits represent the branch of the bank.08.When it comes to rural lending, which are all considered to be priority sector advances?When it comes to rural lending, the loans granted to the following are considered to be priority sector advances – Loans granted to all agriculture related activities; self help group; Differential rate of interest; Loans to SC/ST beneficiaries; Loans provided to doctors for setting up clinics in rural areas; Loans to dealers in fertilizers and pesticides; loans to dealers of springler irrigation and drip irrigation equipments etc.,09.Who is called as an authorized dealer?Authorised dealer is at present known as authorized person. Authorised person is an individual or organization permitted to deal in foreign exchange business in the country.10.What do you know by financial inclusion?Financial inclusion means the following: Providing formal banking services to poor people in urban and rural areas; Promoting the habit of money savings, insurance, pension-investment among poor people; Helping the people in getting loans at reasonable rates from commercial banks so that they do not become victims to local moneylenders11.What are the important initiatives taken through financial inclusion in the country?The following are the important initiatives taken through financial inclusion in our country: Lead banking scheme; No frill accounts; Basic savings bank deposit accounts; JANDHAN accounts; business correspondent and business facilitator facilities; Swabhiman campaign;12.What do you mean by MCLR?MCLR replaces the base rate system. RBI introduced the system with effect from 01.04.2016 in order to determine the base rate by commercial to improve the efficiency of monetary policy transmission. All rupee loans sanctioned and credit limits renewed with effect from 01.04.2016 to be priced with reference to MCLR and it will be an internal benchmark for the banks. It consists of marginal cost of funds, negative carry on account of CRR, operating costs and tenor premium. The marginal cost of funds consists of two components namely; marginal cost of borrowings and return on networth13.What are the major money market instruments?Certificate of deposits; Commercial paper; Inter Bank participation certificates; iner bank term money; Treasury bills; Bills rediscounting and call/notice money14.What are the differences between NEFT and RTGS?Both are two categories of online remittance facilities through CBS enabled branches of commercial banks. The minimum balance that can be sent through RTGS is Rupees two lakhs whereas in the case of NEFT, there is no such limit. The beneficiary gets his funds at real time and it means instantaneously without any loss of time. In the case of the beneficiary gets his funds in between batches15.Who is deciding the rate of interest for savings deposit accounts?Rate of interest for savings deposits is decided by respective commercial banks only and RBI has permitted full freedom in this connection.16.Who cannot open savings deposit accounts?Proprietorship concerns, partnership firms, limited liability partnership firms, private limited companies and public limited companies are not permitted to open savings accounts17.What is meant by memorandum of association?Memorandum of association is the parent document for any company whether it is a private limited company or private limited company. It contains the details of formation of the company, policies, objectives, registered office and more.18.What is known as power of attorney?Power of attorney is an authorization given by one person called as principal in favour of another person called as an agent authorizing the agent to perform certain activities on behalf of the principal and it can be specific power of attorney or particular power of attorney.19.In which currencies FCNR accounts can be opened in our country?FCNR account can be opened in the following currencies namely; US dollars, Sterling Pounds; Euro; Japanese Yen; Australian dollars and Canadian dollars.20.What are the differences between NRE and FCNR?NRE and FCNR accounts are opened by non resident Indians and Persons of Indian Origin in India. NRE accounts are to be opened in rupees whereas FCNR is opened in foreign currencies. NRE accounts can be opened in the form of savings account, current account, reinvestment deposit and fixed deposit whereas, FCNR account is permitted to be opened as fixed deposit or reinvestment deposit. NRE term deposits can be opened for a minimum period of seven days and maximum period of ten years. FCNR accounts can be opened for a minimum period of one year and maximum period of five years.Candidate: 00501.What do you mean by masala bonds?Masala bonds are the bonds issued for rupee denominated borrowings by Indian companies in overseas markets02.What do you mean by secondary market in our country?Secondary market pertains to capital market and it is also known as stock exchange or old issues market. Shares, debentures and bonds can be bought and sold from the stock exchange through registered brokers.03.What do you mean by fund based limits and non fund based limits?The loans provided to the borrowers in the form of term loans, overdrafts, cash credits and bills discounting limits are known as fund based limits since funds are released to the borrowers. Guarantees and letter of credits are non fund based limits since no funds are provided for the time being since they are contingent liabilities.04.What do you mean by off balance sheet items?Guarantees, letter of credits and bills sent for collection for which proceeds are yet to be realized are known as off balance sheet items05.What do you mean by closed ended scheme?This is one form of mutual fund scheme. Like initial public offer, the scheme is open for a certain period only and after which the public cannot invest their amount in the units under this scheme.06.What do you mean by open ended scheme?This is one mutual fund scheme and the units under scheme can be purchased and sold at any time07.What do you mean by overdraft facility granted by a bank?Overdraft is a facility granted by the banks towards meeting the working capital requirements of a borrower. This is provided by means of credit limit over and above the current account balance and the borrower has to pay the interest as and when due.08.What do you mean by collateral security?Collateral security is an additional security provided by the borrower in addition to the primary security. For example, in the case of vehicle loan, the car purchased out of loan is known as the prime security and the insurance policy obtained by the bank from the borrower for the sanction of this loan is known as collateral security.09.In regard to educating a customer, what are the different kinds of information boards displayed in a bank branch?The following boards are available in the bank branches – Working hours and business hours; Interest rates on various deposits; Interest rates for loans; Service charges; Time norms for various services; Details of schemes available in the branch10.Who is the present RBI Governor?The present governor of RBI is Shri Urjit Patel and he is functioning as the governor of RBI since 04th September, 201611.What do you mean by unclaimed deposits?The deposits which are not in operation for more than ten years are known as unclaimed deposits. For the purpose of this classification, the customer induced transactions are only taken into account.12.How many regional centres are available for RBI in the country?Reserve Bank of India has four regional centres at the following places – Chennai, Kolkatta, New Delhi and Mumbai.13.What do you mean by white label automated teller machines?The automated teller machines which are maintained and managed by non bank entities are known as white label automated teller machines. In our country TATA Indicash and Muthoot finance are having such machines installed at various centres.14.What are the advantages of CTS?CTS means cheque truncation scheme. This is used for clearing purpose. Normally commercial banks used to send the physical cheques through their15.What do you mean by certificate of deposits?Certificate of deposits are issued by scheduled commercial banks (except Regional Rural Banks) and all financial institutions within their umbrella limits. Individuals, corporate, companies, trusts, funds and associations can invest in certificate of deposits and they are issued for a minimum period of seven days and maximum period of twelve months in the case of commercial banks and in the case of financial institutions the minimum period is one year and maximum three years, Minimum amount for investment is Rupees one lakh and in multiples of Rupees one lakh.16.RBI is called by which names – mention four names?RBI is called by the following names – banker to banker; lender of the last resort; custodian of banks; banker to government;17.What do you mean by ways and means advances?Ways and means advances were introduced as per an agreement between Reserve Bank of India and Government and they are temporary overdraft facilities provided by RBI to central government and state governments and the purpose is to bridge the time interval of mismatch the government expenditure and receipts. The duration of the limit is ten days for central government and 14 days for state government departments.18.Who is banking ombudsman and by whom he is appointed?Banking Ombudsman is an arbitrary authority who resolves the complaints received from the customers of commercial banks in regard to bank related issues.19.What do you mean by EEFC account?Exchange Earner’s Foreign Currency account is an account maintained in an account maintained in foreign currency with an authorized dealer ; i/e/ a bank dealing in foreign exchange. Professionals, exporters, trainers etc., who are in receipt of foreign exchange for the services extended by them in foreign countries can invest the amount in EEFC account and the account will be in the form of current account and no interest is paid for the balance held in EEFC account.20.What do you know by NBFC?NBFC means non banking finance companies. It is a company registered under Indian Companies act 1956 and presently 2013 engaged in the business of providing loans and advances, acquisition of shares/stocks/bonds/debentures/securities issued by Government or local authority or other marketable securities of a like nature, leasing, hire purchase, insurance business, chit fund business etc.,Candidate: 00601.What do you mean by arbitrage?It is the process of purchase of one security from one market and selling the same security for earning a profit at the same time at another market.02.What do you mean by Bonus shares?It is the free allotment of shares in certain proportion to the existing shares held by the shareholders of a company and this is a means of providing reward to the investors for their contribution to the growth of the organization by capital investment03.What do you mean by Bull?It is a term given to a speculator on stock exchange who buys the securities in expectation of a rise in the prices. The market is called as bullish when there is a domination of buyers over the sellers04.What is known as dematerialization?Dematerialisation is the process by which shares in the physical form are cancelled and they are issued in electronic form. The certificates are known as demat shares. This process eliminates the time and manpower involved in transfer and registration of shares from the seller to the buyer05.What do you mean by moorat trading?It is the auspicious trading on a special day, say Diwali during some specified hours.06.What do you mean by rights issue?It is the issue of new shares to the existing shareholders in a fixed ratio to those already held at a price which is generally below the market price of the old shares.07.What do you mean by futures?It is a standard contract issued on an agreement to buy or sell an asset at a certain price at a certain time in future. It is an obligation on the buyer to purchase the underlying instrument and the seller to sell it.08.What do you mean by forward?The forward is a contract that is traded off the stock exchange and it is self regulatory and has certain flexibility unlike future which are traded at stock exchange only and it do not have flexibility of quantity and quality of commodity to be delivered and these are regulated by Securities Exchange Board of India, Reserve Bank of India or other agencies.09.What do you mean by factoring?Factoring is an arrangement in which short term domestic receivables on sale of goods or services are sold to a company called as factor and this scheme came into existence during 1991 based on the report of Kalyanasundaram Committee10.What do you mean by forfeiting?Forfaiting represents the purchase of obligations, which fall due at some future date and arise from the delivery of goods in export transactions, without recourse to the previous holder of the obligations.11.What do you mean by leasing?A lease is a contract where the owner of the assets transfers the right to another person to use the assets against the payment of fixed lease rentals. In the case of one lease contract, there are two parties namely – the lessor or the owner and the lessee or user. The lessor remains owner and the leased property remains with the possession of the lessee.12.What do you mean by debt market?It is a market wherein the debt instruments are issued to the public by any company for investment and such debt instrument bears a fixed interest rate payable half yearly on specific dates and principal amount repayable on particular date on redemption. Debentures are normally secured/charged against the asset of the company in favour of debenture holder. The following are some debt instruments – debenture; bond; zero coupon bond; convertible bond; security receipts etc.,13.What do you mean by greenshoe option?It is an option provided by Securities and Exchange Board of India to a company which is coming out with one initial public offer to the public. By this option, the company can retain certain portion of the applications received through IPO in case of oversubscription.14.What do you mean by equity market?Equity market consists of investment by the public in different kinds of shares issued by the company and by subscribing for the shares, the investors are expressing their willingness to stand as owners of the company. The equity market consists of equity shares, preference shares, rights shares, bonus shares etc.,15.What do you mean by sweat equity?Directors and employees contribute intellectual property rights to the company in the form of providing technical know-how captured by way of research or contributed by way of strategy software developed for the company or adding profit and economic value. To compensate the directors and employees, the concept of sweat equity has come into existence.16.What do you mean by participatory notes?A participatory note is a financial derivative instrument issued against an underlying security and it allows the holder, to get dividend or capital gains earned from the underlying security although some of the holders may not be eligible to trade in stock markets in India.17.What do you mean by book building?Book building is the process to assess the demand for a particular public issue of various prices, based on which the issue is priced and sold to the investors.18.What do you mean by sensex?It is a stock market index provided by Bombay Stock Exchange for the information of the investors. The positive or negative variation in the index provides an insight for investment or dis-investment to the general public and especially the investors in the stock market. It is based on the market capitalization of top thirty shares earmarked by BSE19.What do you mean by Nifty?It is a stock market index provided by National Stock Exchange for the information of the investors. The positive or negative variation in the index provides an insight for the investment or dis-investment to the general public and especially the investors who are participating in stock market trading. It is based on the market capitalization of top fifty shares earmarked by NSE20.What do you mean by swap?A swap is a contract that binds two counterparties to exchange the different streams of payments over the specified period at specified rate.

SCHEME OF ‘POST-MATRIC SCHOLARSHIP’ FOR STUDENTS BELONGING TO1. BACKGROUNDThe Prime Minister’s New 15 Point Programme for the Welfare of Minorities was announced in June, 2006. It provides that a post-matric scholarship scheme for meritorious students from minority communities would be implemented.2. OBJECTIVEThe objective of the scheme is to award scholarships to meritorious students belonging to economically weaker sections of minority community so as to provide them better opportunities for higher education, increase their rate of attainment in higher education and enhance their employability.3. SCOPEThe scholarship is to be awarded for studies in India in a government or private higher secondary school/college/university, including such residential institutes of the Government and eligible private institutes selected and notified in a transparent manner by the State Government/Union Territory Administration concerned. It will also cover technical and vocational courses in Industrial Training Institutes/ Industrial Training Centres affiliated with the National Council for Vocational Training (NCVT) of classes XI and XII level including Polytechnics and other courses (any course of less than one year duration is not covered under this scheme; Certificate courses are also not covered).4. ELIGIBILITYScholarship will be awarded to the students who have secured not less than 50% marks or equivalent grade in the previous final examination and the annual income of whose parents/guardians from all sources does not exceed Rs.2.00 lakh.11. DISTRIBUTIONMuslims, Sikhs, Christians, Buddhists, Jain and Zoroastrians (Parsis) have been notified as minority communities under Section 2 (c) of the National Commission for Minorities Act, 1992. A total of five (05) lakh scholarships are targeted to be distributed as ‘Fresh’ Scholarships, besides, Renewal scholarships. The distribution of scholarship among the States/Union Territories will be made on the basis of population of minorities in the States/Union Territories as per Census 2001 for 2017-18 and as per the population of minorities in the States/Union Territories of Census 2011 for 2018-19 and 2019-20.6. EARMARKINGi) 30% scholarship is earmarked for girls students of each minority community in a State/UT which is transferable to male students of that community in case of non-availability of female students in that community in the concerned State/UT. 30% is the floor and not the ceiling for eligible girl students.ii) If the physical target of scholarship for a particular minority community in a state/UT is not utilized, it will be distributed among the same minority community in other States/UTs strictly in accordance with merit and without disturbing the national ratio. Any unutilized community quota shall be distributed amongst other communities again in accordance with merit and without affecting the overall national quota.iii) A student residing in a particular State/UT will be entitled for scholarship under the quota of that State/UT only irrespective of his/her place of study.7. SELECTION PROCEDUREFresh - As the number of scholarships for minorities available in a year is fixed and limited, it is necessary to lay down preference for selection. Inter-se selection weightage is to be given to poverty rather than marks (the applicant is required to submit an income certificate as per para-11(ii)). In case of same income, merit shall be generated from ‘Date of Birth’ criteria of applicant (senior is preferred).Renewal – There is no merit list generation for renewal cases. Renewal applicant will get the scholarship if one has obtained 50% in his/her previous year’s examinations (at the same institute and in same course) and his/her application is verified by all authorities (as designated by Ministry of Minority Affairs) and approved by State Governments/UTs.8. DURATIONThe scholarships shall be provided for the entire course of the academic year. Maintenance allowance will be given as fixed lump sum amount in an academic year9. RATES OF SCHOLARSHIPActual financial assistance will be provided for admission & course /tuition fee and maintenance allowance as given below subject to a maximum ceiling indicated against item concerned for 2017-20. The details of the scheme interventions for 2017-18 to10. IMPLEMENTING AGENCIESThe scheme is being implemented/funded by Ministry of Minority Affairs through the States/UT’s Administration.11. CONDITIONS FOR SCHOLARSHIP(i) Scholarship will be awarded to the students studying in Classes XI and XII including technical and vocational courses of this level including Polytechnics, ITIs, and other courses.(ii) An Income Certificate, issued from a Competent Authority in the State/UT Governments is required in respect of parent/guardian of the student.(iii) A Self-Certified Community Certificate is required from the student who has attained 18 years of age. For others the Community Certificate certified by parent/guardian of the student is required.(iv) The continuance of award (for Renewal applicants) will be subject to securing 50% marks in the previous year’s examination (provided the students pursues the same course and same Institute/School).(v) Maintenance allowance will be provided to hostellers and day scholars.(vi) Scholarship will not be given to more than two students from a family (applicable or all Scholarship schemes meant for minorities under this Ministry taken together).(vii) Students should be regular in attendance for which the yardstick will be decided by the competent authority of the school.(viii) The school/institute will certify the claim of student of being an outstation student not residing in hostel of the school/institute concerned on the basis of permanent address and parents’ address.(ix) Migration of students from one school/institute to another is not allowed for renewal applicants during the period of academic course.(x) If a student violates school discipline or any other terms and conditions of the scholarship, scholarship may be suspended or cancelled. The State Government/Union Territory Administration can also directly cancel the award if duly satisfied of the reasons of violation of these regulations governing the scheme.(xi) If a student is found to have obtained a scholarship by false statement, his/her scholarship will be cancelled forthwith and the amount of the scholarship paid will be recovered by the concerned State/UT Govt.(xii) The course/tuition fees and maintenance allowance will be credited to thestudent’s account directly under Direct Benefit Transfer (DBT) mode.(xiii) The student obtaining benefits under this scheme shall not be allowed to avail of benefits under any other scheme for this purpose.(xiv) A student shall be eligible for only one scholarship out of all the available Scholarships of Central Government meant for SC/ST/OBC/ minority.(xv) The amount of Administrative Expenses (@ 2%) for States/UTs in subsequent year shall be released after receiving the utilization certificate for the previous years.(xvi) The scheme will be evaluated at regular intervals by the Ministry or any other agency designated by the Ministry and the cost of the evaluation will be borne by the Ministry of Minority Affairs under the provision of the scheme.(xvii) The State/Union Territory shall place all relevant details of financial and physical achievements on their website.(xviii) The regulations can be changed at any time at the discretion of the Government of India.(xix) It will be necessary for the eligible applicants to provide Aadhaar number while applying for the scholarship and in case, an individual does not possess Aadhaar one can provide the details of alternative identification documents, as stated in the Gazette Notification- S.O. No. 1284 (E) No. 1137, dated 21.04.2017 (as per Appendix-C).(xx) Students who have entered Aadhaar in their online application correctly and Aadhaar seeded with any of their bank account, in such cases the amount of scholarship will be credited to Aadhaar seeded bank account only (though student has mentioned any other non-seeded bank account in online application).12. ADMINISTRATIVE EXPENSESAs the magnitude of data to be entered and processed would be enormous as the scheme gets implemented over the years, there would be a need to engage qualified skilled personnel right from the beginning to ensure that the data based computerized systems are operational. Qualified skilled personnel possessing requisite expertise to operate computer programme designed for this purpose, enter, process, analyse, monitor, retrieve and transfer data should be engaged on contract basis as per need. Data provided by the States/Union Territories will be maintained and managed by the Ministry with personnel of similar expertise to be engaged on contract basis. A provision not exceeding 2% of the total budget will be made to meet the administrative and allied costs viz. expenditure of the States/Union Territories and the Ministry for office equipments including computers and accessories, furniture, printing of application forms, advertisements, engagement of personnel, etc. This provision will also be used for evaluation and monitoring of the scheme, through outside reputed institutions/agencies engaged by the Ministry of Minority Affairs, Government of India and the State Governments/Union Territory Administrations.13. RENEWAL OF SCHOLARSHIPThe scholarship, once awarded, may be renewed during the next academic year of the course on the production of certificate that the student has secured 50% marks in the previous year’s examination (provided the students pursues the same course and same Institute/School).14. ANNOUNCEMENT OF SCHEMEThe scheme will be announced by the concerned State Government/Union Territory Administration well in time, through advertisements in the leading language newspapers and local dailies and by using other suitable publicity media.15. MODE OF APPLYINGThe scheme is implemented through the National Scholarship Portal (NSP). It is mandatory for all students to apply online on the website i.e. www.scholarships.gov.in.16. PATTERN OF FINANCIAL ASSISTANCEThe scheme is Central Sector Scheme and 100% funding is provided by the Ministry of Minority Affairs.17. MONITORING & TRANSPARENCYThe State/Union Territory shall maintain year-wise details of the students receiving scholarship, indicating school/institute, location of school/institute, government or private, class, gender, new or renewal, permanent address and parents’ address. The States/ Union Territories shall place relevant physical and financial details in their official website18. EVALUATIONThe monitoring of the financial and physical performance of the scheme will be evaluated by assigning evaluation/impact studies to reputed institutions/agencies by the Ministry of Minority Affairs, Government of India.19. INSTRUCTIONS RELATED TO BANK ACCOUNT DETAILS (to be filled bythe students in online application form are as under):(i) Students must select their bank/branch name carefully from the drop-down list.(ii) Thereafter the complete account no. must be entered correctly. Studentsare suggested to get their account number verified by their concernedBank Branch including Bank account number and IFS Code.(iii) Disclaimer (*If bank details entered by students are found incorrect or notvalidated by the student’s bank, the scholarship will be cancelled/amountwill not be transferred even though the application is approved forscholarship).(iv) Bank Account holders must check their ‘Know your Customer’ (KYC)status from the bank and if required the KYC must be done for successfultransaction of scholarship amount.(v) Bank Account must be operational/active till the scholarship is disbursed.(vi) Bank Account must be preferably in any scheduled Bank with corebanking facility and proper IFS Code.(vii) Bank Account must be in the name of the student/applicant only.20. MODIFICATION (if any, during 2017-18 to 2019-20)Minor modifications, if any, in the scheme having no financial implications may be made by the Competent Authority in the Ministry of Minority Affairs without seeking recourse to SFC/EFC/Cabinet. However, Ministry of Finance, Department of Expenditure would be consulted.

The first thought while hearing and going through the budget was, It will focus on strengthening Agro-economy while allowing relaxation for the corporate, startups and small tax payers on taxation, registrations and compliance part. The Union Budget was prepared keeping in mind the present scenario of our country. So its mix bag of cookies to turn the odds in their favour. Let's see what budget has offered.• Growth of Economy accelerated to 7.6% in 2015-16.• India hailed as a ‘bright spot’ amidst a slowing global economy by IMF.• Robust growth achieved despite very unfavorable global conditions and two consecutive years shortfall in monsoon by 13%• Foreign exchange reserves touched highest ever level of about 350 billion US dollars.• Despite increased devolution to States by 55% as a result of the 14th Finance Commission award, plan expenditure increased at RE stage in 2015-16 – in contrast to earlier years.CHALLENGES IN 2016-17• Risks of further global slowdown and turbulence.• Additional fiscal burden due to 7th Central Pay Commission recommendations and OROP.ROADMAP & PRIORITIES• 'Transform India' to have a significant impact on economy and lives of people.• Government to focus on –i. ensuring macro-economic stability and prudent fiscal management.ii. boosting on domestic demandiii. continuing with the pace of economic reforms and policy initiatives to change the lives of our people for the better.• Focus on enhancing expenditure in priority areas of - farm and rural sector, social sector, infrastructure sector employment generation and recapitalisation of the banks.• Focus on Vulnerable sections through:i. Pradhan Mantri Fasal Bima Yojanaii. New health insurance scheme to protect against hospitalisation expenditureiii. Facility of cooking gas connection for BPL families• Continue with the ongoing reform programme and ensure passage of the Goods and Service Tax bill and Insolvency and Bankruptcy law• Undertake important reforms by:i. Giving a statutory backing to AADHAR platform to ensure benefits reach the deserving.ii. Freeing the transport sector from constraints and restrictionsiii. Incentivising gas discovery and exploration by providing calibrated marketing freedomiv. Enactment of a comprehensive law to deal with resolution of financial firmsv. Provide legal framework for dispute resolution and re-negotiations in PPP projects and public utility contractsvi. Undertake important banking sector reforms and public listing of general insurance companies undertake significant changes in FDI policy.AGRICULTURE AND FARMERS’ WELFARE• Allocation for Agriculture and Farmers’ welfare is Rs.35,984 crore• ‘Pradhan Mantri Krishi Sinchai Yojana’ to be implemented in mission mode. 28.5 lakh hectares will be brought under irrigation.• Implementation of 89 irrigation projects under AIBP, which are languishing for a long time, will be fast tracked• A dedicated Long Term Irrigation Fund will be created in NABARD with an initial corpus of about Rs.20,000 crore• Programme for sustainable management of ground water resources with an estimated cost of Rs.6,000 crore will be implemented through multilateral funding• 5 lakh farm ponds and dug wells in rain fed areas and 10 lakh compost pits for production of organic manure will be taken up under MGNREGA• Soil Health Card scheme will cover all 14 crore farm holdings by March 2017.• 2,000 model retail outlets of Fertilizer companies will be provided with soil and seed testing facilities during the next three years• Promote organic farming through ‘Parmparagat Krishi Vikas Yojana’ and 'Organic Value Chain Development in North East Region'.• Unified Agricultural Marketing ePlatform to provide a common emarket platform for wholesale markets• Allocation under Pradhan Mantri Gram Sadak Yojana increased to Rs.19,000 crore. Will connect remaining 65,000 eligible habitations by 2019.• To reduce the burden of loan repayment on farmers, a provision of Rs.15,000 crore has been made in the BE 2016-17 towards interest subvention• Allocation under Prime Minister Fasal Bima Yojana Rs.5,500 crore.• Rs.850 crore for four dairying projects - ‘Pashudhan Sanjivani’, ‘Nakul Swasthya Patra’, ‘E-Pashudhan Haat’ and National Genomic Centre for indigenous breedsRURAL SECTOR• Allocation for rural sector - Rs.87,765 crore.• Rs. 2.87 lakh crore will be given as Grant in Aid to Gram Panchayats and Municipalities as per the recommendations of the 14th Finance Commission• Every block under drought and rural distress will be taken up as an intensive Block under the Deen Dayal Antyodaya Mission• A sum of Rs. 38,500 crore allocated for MGNREGS.• 300 Rurban Clusters will be developed under the Shyama Prasad Mukherjee Rurban Mission• 100% village electrification by 1st May, 2018.• District Level Committees under Chairmanship of senior most Lok Sabha MP from the district for monitoring and implementation of designated Central Sector and Centrally Sponsored Schemes.• Priority allocation from Centrally Sponsored Schemes to be made to reward villages that have become free from open defecation.• A new Digital Literacy Mission Scheme for rural India to cover around 6 crore additional household within the next 3 years.• National Land Record Modernisation Programme has been revamped.• New scheme Rashtriya Gram Swaraj Abhiyan proposed with allocation of Rs.655 crore.SOCIAL SECTOR INCLUDING HEALTH CARE• Allocation for social sector including education and health care – Rs.1,51,581 crore.• Rs.2,000 crore allocated for initial cost of providing LPG connections to BPL families.• New health protection scheme will provide health cover up to Rs.One lakh per family. For senior citizens an additional top-up package up to Rs.30,000 will be provided.• 3,000 Stores under Prime Minister’s Jan Aushadhi Yojana will be opened during 2016-17.• ‘National Dialysis Services Programme’ to be started under National Health Mission through PPP mode• “Stand Up India Scheme” to facilitate at least two projects per bank branch. This will benefit at least 2.5 lakh entrepreneurs.• National Scheduled Caste and Scheduled Tribe Hub to be set up in partnership with industry associations• Allocation of Rs.100 crore each for celebrating the Birth Centenary of Pandit Deen Dayal Upadhyay and the 350th Birth Anniversary of Guru Gobind Singh.EDUCATION, SKILLS AND JOB CREATION• 62 new Navodaya Vidyalayas will be opened• Sarva Shiksha Abhiyan to increasing focus on quality of education• Regulatory architecture to be provided to ten public and ten private institutions to emerge as world-class Teaching and Research Institutions• Higher Education Financing Agency to be set-up with initial capital base of Rs.1000 Crores• Digital Depository for School Leaving Certificates, College Degrees, Academic Awards and Mark sheets to be set-up.SKILL DEVELOPMENT• Allocation for skill development – Rs.1804. crore.• 1500 Multi Skill Training Institutes to be set-up.• National Board for Skill Development Certification to be setup in partnership with the industry and academia• Entrepreneurship Education and Training through Massive Open Online CoursesJOB CREATION• Govt. will pay contribution of 8.33% for of all new employees enrolling in EPFO for the first three years of their employment. Budget provision of Rs.1000 crore for this scheme.• Deduction under Section 80JJAA of the Income Tax Act will be available to all assesses who are subject to statutory audit under the Act• 100 Model Career Centres to operational by the end of 2016-17 under National Career Service.• Model Shops and Establishments Bill to be circulated to States.INFRASTRUCTURE AND INVESTMENT• Total investment in the road sector, including PMGSY allocation, would be Rs.97,000 crore during 2016-17.• India’s highest ever kilometres of new highways were awarded in 2015. To approve nearly 10,000 kms of National Highways in 2016-17.• Allocation of Rs.55,000 crore in the Budget for Roads. Additional Rs.15,000 crore to be raised by NHAI through bonds.• Total outlay for infrastructure - Rs.2,21,246 crore.• Amendments to be made in Motor Vehicles Act to open up the road transport sector in the passenger segment• Action plan for revival of unserved and underserved airports to be drawn up in partnership with State Governments.• To provide calibrated marketing freedom in order to incentivise gas production from deep-water, ultra deep-water and high pressure-high temperature areas• Comprehensive plan, spanning next 15 to 20 years, to augment the investment in nuclear power generation to be drawn up.• Steps to re-vitalise PPPs:· Public Utility (Resolution of Disputes) Bill will be introduced during 2016-17· Guidelines for renegotiation of PPP Concession Agreements will be issued· New credit rating system for infrastructure projects to be introduced• Reforms in FDI policy in the areas of Insurance and Pension, Asset Reconstruction Companies, Stock Exchanges.• 100% FDI to be allowed through FIPB route in marketing of food products produced and manufactured in India.• A new policy for management of Government investment in Public Sector Enterprises, including disinvestment and strategic sale, approved.FINANCIAL SECTOR REFORMS• A comprehensive Code on Resolution of Financial Firms to be introduced.• Statutory basis for a Monetary Policy framework and a Monetary Policy Committee through the Finance Bill 2016.• A Financial Data Management Centre to be set up.• RBI to facilitate retail participation in Government securities.• New derivative products will be developed by SEBI in the Commodity Derivatives market.• Amendments in the SARFAESI Act 2002 to enable the sponsor of an ARC to hold up to 100% stake in the ARC and permit non institutional investors to invest in Securitization Receipts.• Comprehensive Central Legislation to be bought to deal with the menace of illicit deposit taking schemes.• Increasing members and benches of the Securities Appellate Tribunal.• Allocation of Rs.25,000 crore towards recapitalisation of Public Sector Banks.• Target of amount sanctioned under Pradhan Mantri Mudra Yojana increased to Rs.1,80,000 crore.• General Insurance Companies owned by the Government to be listed in the stock exchanges.GOVERNANCE AND EASE OF DOING BUSINESS• A Task Force has been constituted for rationalisation of human resources in various Ministries.• Comprehensive review and rationalisation of Autonomous Bodies.• Bill for Targeted Delivery of Financial and Other Subsidies, Benefits and Services by using the Aadhar framework to be introduced.• Introduce DBT on pilot basis for fertilizer.• Automation facilities will be provided in 3 lakh fair price shops by March 2017.• Amendments in Companies Act to improve enabling environment for start-ups.• Price Stabilisation Fund with a corpus of Rs.900 crore to help maintain stable prices of Pulses.• “Ek Bharat Shreshtha Bharat” programme will be launched to link States and Districts in an annual programme that connects people through exchanges in areas of language, trade, culture, travel and tourism.FISCAL DISCIPLINE• Fiscal deficit in RE 2015-16 and BE 2016-17 retained at 3.9% and 3.5%.• Revenue Deficit target from 2.8% to 2.5% in RE 2015-16• Total expenditure projected at Rs.19.78 lakh crore• Plan expenditure pegged at Rs.5.50 lakh crore under Plan, increase of 15.3%• Non-Plan expenditure kept at Rs.14.28 lakh crores• Special emphasis to sectors such as agriculture, irrigation, social sector including health, women and child development, welfare of Scheduled Castes and Scheduled Tribes, minorities, infrastructure.• Mobilisation of additional finances to the extent of Rs.31,300 crore by NHAI, PFC, REC, IREDA, NABARD and Inland Water Authority by raising Bonds.• Plan / Non-Plan classification to be done away with from 2017-18.• Every new scheme sanctioned will have a sunset date and outcome review.• Rationalised and restructured more than 1500 Central Plan Schemes into about 300 Central Sector and 30 Centrally Sponsored Schemes.• Committee to review the implementation of the FRBM Act.RELIEF TO SMALL TAX PAYERS• Raise the ceiling of tax rebate under section 87A from Rs.2000 to Rs.5000 to lessen tax burden on individuals with income upto Rs.5 laks.• Increase the limit of deduction of rent paid under section 80GG from Rs.24000 per annum to Rs.60000, to provide relief to those who live in rented houses.BOOST EMPLOYMENT AND GROWTH• Increase the turnover limit under Presumptive taxation scheme under section 44AD of the Income Tax Act to Rs.2 crores to bring big relief to a large number of assessees in the MSME category.• Extend the presumptive taxation scheme with profit deemed to be 50%, to professionals with gross receipts up to Rs.50 lakh.• Phasing out deduction under Income Tax:i. Accelerated depreciation wherever provided in IT Act will be limited to maximum 40% from 1.4.2017ii. Benefit of deductions for Research would be limited to 150% from 1.4.2017 and 100% from 1.4.2020iii. Benefit of section 10AA to new SEZ units will be available to those units which commence activity before 31.3.2020.iv. The weighted deduction under section 35CCD for skill development will continue up to 1.4.2020• Corporate Tax rate proposals:- New manufacturing companies incorporated on or after 1.3.2016 to be given an option to be taxed at 25% + surcharge and cess provided they do not claim profit linked or investment linked deductions and do not avail of investment allowance and accelerated depreciation.- Lower the corporate tax rate for the next financial year for relatively small enterprises i.e companies with turnover not exceeding Rs.5 crore (in the financial year ending March 2015), to 29% plus surcharge and cess.• 100% deduction of profits for 3 out of 5 years for startups setup during April, 2016 to March, 2019. MAT will apply in such cases.• 10% rate of tax on income from worldwide exploitation of patents developed and registered in India by a resident.• Complete pass through of income-tax to securitization trusts including trusts of ARCs. Securitisation trusts required to deduct tax at source.• Period for getting benefit of long term capital gain regime in case of unlisted companies is proposed to be reduced from three to two years.• Non-banking financial companies shall be eligible for deduction to the extent of 5% of its income in respect of provision for bad and doubtful debts.• Determination of residency of foreign company on the basis of Place of Effective Management (POEM) is proposed to be deferred by one year.• Commitment to implement General Anti Avoidance Rules (GAAR) from 1.4.2017.• Exemption of service tax on services provided under Deen Dayal Upadhyay Grameen Kaushalya Yojana and services provided by Assessing Bodies empanelled by Ministry of Skill Development & Entrepreneurship.• Exemption of Service tax on general insurance services provided under ‘Niramaya’ Health Insurance Scheme launched by National Trust for the Welfare of Persons with Autism, Cerebral Palsy, Mental Retardation and Multiple Disability.• Basic custom and excise duty on refrigerated containers reduced to 5% and 6%.MAKE IN INDIA• Changes in customs and excise duty rates on certain inputs to reduce costs and improve competitiveness of domestic industry in sectors like Information technology hardware, capital goods, defence production, textiles, mineral fuels & mineral oils, chemicals & petrochemicals, paper, paperboard & newsprint, Maintenance repair and overhauling [MRO] of aircrafts and ship repair.MOVING TOWARDS A PENSIONED SOCIETY• Withdrawal up to 40% of the corpus at the time of retirement to be tax exempt in the case of National Pension Scheme (NPS). Annuity fund which goes to legal heir will not be taxable.• In case of superannuation funds and recognized provident funds, including EPF, the same norm of 40% of corpus to be tax free will apply in respect of corpus created out of contributions made on or from 1.4.2016.• Limit for contribution of employer in recognized Provident and Superannuation Fund of Rs.1.5 lakh per annum for taking tax benefit. Exemption from service tax for Annuity services provided by NPS and Services provided by EPFO to employees.• Reduce service tax on Single premium Annuity (Insurance) Policies from 3.5% to 1.4% of the premium paid in certain cases.PROMOTING AFFORDABLE HOUSING• 100% deduction for profits to an undertaking in housing project for flats upto 30 sq. metres in four metro cities and 60 sq. metres in other cities, approved during June 2016 to March 2019 and completed in three years. MAT to apply.• Deduction for additional interest of Rs. 50,000 per annum for loans up to Rs.35 lakh sanctioned in 2016-17 for first time home buyers, where house cost does not exceed Rs.50 lakh.• Distribution made out of income of SPV to the REITs and INVITs having specified shareholding will not be subjected to Dividend Distribution Tax, in respect of dividend distributed after the specified date.• Exemption from service tax on construction of affordable houses up to 60 square metres under any scheme of the Central or State Government including PPP Schemes.• Extend excise duty exemption, presently available to Concrete Mix manufactured at site for use in construction work to Ready Mix Concrete.RESOURCE MOBILIZATION FOR AGRICULTURE, RURAL ECONOMY AND CLEAN ENVIRONMENT• Additional tax at the rate of 10% of gross amount of dividend will be payable by the recipients receiving dividend in excess of Rs.10 lakh per annum.• Surcharge to be raised from 12% to 15% on persons, other than companies, firms and cooperative societies having income above Rs.1 crore.• Tax to be deducted at source at the rate of 1 % on purchase of luxury cars exceeding value of Rs. ten lakh and purchase of goods and services in cash exceeding Rs.two lakh.• Securities Transaction tax in case of ‘Options’ is proposed to be increased from .017% to .05%.• Equalization levy of 6% of gross amount for payment made to nonresidents exceeding Rs.1 lakh a year in case of B2B transactions.• Krishi Kalyan Cess, @ 0.5% on all taxable services, w.e.f. 1 June 2016. Proceeds would be exclusively used for financing initiatives for improvement of agriculture and welfare of farmers. Input tax credit of this cess will be available for payment of this cess.• Infrastructure cess, of 1% on small petrol, LPG, CNG cars, 2.5% on diesel cars of certain capacity and 4% on other higher engine capacity vehicles and SUVs. No credit of this cess will be available nor credit of any other tax or duty be utilized for paying this cess.• Excise duty of ‘1% without input tax credit or 12.5% with input tax credit’ on articles of jewellery [excluding silver jewellery, other than studded with diamonds and some other precious stones], with a higher exemption and eligibility limits of Rs.6 crores and Rs.12 crores respectively.• Excise on readymade garments with retail price of Rs.1000 or more raised to 2% without input tax credit or 12.5% with input tax credit.• ‘Clean Energy Cess’ levied on coal, lignite and peat renamed to ‘Clean Environment Cess’ and rate increased from Rs.200 per tonne to Rs. 400 per tonne.• Excise duties on various tobacco products other than beedi raised by about 10 to 15%.• Assignment of right to use the spectrum and its transfers has been deducted as a service leviable to service tax and not sale of intangible goods.PROVIDING CERTAINTY IN TAXATION• Committed to providing a stable and predictable taxation regime and reduce black money.• Domestic taxpayers can declare undisclosed income or such income represented in the form of any asset by paying tax at 30%, and surcharge at 7.5% and penalty at 7.5%, which is a total of 45% of the undisclosed income. Declarants will have immunity from prosecution.• Surcharge levied at 7.5% of undisclosed income will be called Krishi Kalyan surcharge to be used for agriculture and rural economy.• New Dispute Resolution Scheme to be introduced. No penalty in respect of cases with disputed tax up to Rs.10 lakh. Cases with disputed tax exceeding Rs.10 lakh to be subjected to 25% of the minimum of the imposable penalty. Any pending appeal against a penalty order can also be settled by paying 25% of the minimum of the imposable penalty and tax interest on quantum addition.• High Level Committee chaired by Revenue Secretary to oversee fresh cases where assessing officer applies the retrospective amendment.• One-time scheme of Dispute Resolution for ongoing cases under retrospective amendment.• Penalty rates to be 50% of tax in case of underreporting of income and 200% of tax where there is misreporting of facts.• Disallowance will be limited to 1% of the average monthly value of investments yielding exempt income, but not exceeding the actual expenditure claimed under rule 8D of Section 14A of Income Tax Act.• Time limit of one year for disposing petitions of the tax payers seeking waiver of interest and penalty.• Mandatory for the assessing officer to grant stay of demand once the assesse pays 15% of the disputed demand, while the appeal is pending before Commissioner of Income-tax (Appeals).• Monetary limit for deciding an appeal by a single member Bench of ITAT enhanced from Rs.15 lakhs to Rs.50 lakhs.• 11 new benches of Customs, Excise and Service Tax Appellate Tribunal (CESTAT).SIMPLIFICATION AND RATIONALIZATION OF TAXES• 13 cesses, levied by various Ministries in which revenue collection is less than Rs.50 crore in a year to be abolished.• For non-residents providing alternative documents to PAN card, higher TDS not to apply.• Revision of return extended to Central Excise assesses.• Additional options to banking companies and financial institutions, including NBFCs, for reversal of input tax credits with respect to nontaxable services.• Customs Act to provide for deferred payment of customs duties for importers and exporters with proven track record.• Customs Single Window Project to be implemented at major ports and airports starting from beginning of next financial year.• Increase in free baggage allowance for international passengers. Filing of baggage only for those carrying dutiable goods.TECHNOLOGY FOR ACCOUNTABILITY• Expansion in the scope of e-assessments to all assessee's (Taxpayer) in 7 mega cities in the coming years.• Interest at the rate of 9% p.a against normal rate of 6% p.a for delay in giving effect to Appellate order beyond ninety days.• ‘e-Sahyog’ to be expanded to reduce compliance cost, especially for small taxpayers.For me the budget has been on right track considering the world economy and Indian political scenario. The fruit of this budget would ripe in later years. FM has done its part while some important bills are essential to be cleared in parliament. Most of the things are in favour of poor and middle-class people. So its 7.5/10 for me.